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The Carbon Corner - Issue #56

Published 7 months ago • 5 min read

Welcome to the 56th issue of The Carbon Corner, where we will explore new projects in the energy space! We hope you enjoy!

Aera Energy Launches CarbonFrontier, a Major Carbon Capture and Storage Project for California

Aera Energy, a prominent California energy producer, has unveiled its first large-scale carbon capture and storage (CCS) project, named CarbonFrontier. This initiative is a crucial part of a broader regional carbon capture hub, aimed at supporting future decarbonization efforts. Aera Energy's CEO, Erik Bartsch, highlighted the company's commitment to coexistence in the evolving energy landscape, aligning with California's objectives to implement climate-friendly energy solutions. California aims to achieve carbon neutrality by 2045, necessitating significant CCS deployment, particularly in the energy sector, to reduce CO2 emissions.

The CarbonFrontier CCS project is set to commence operations by the end of the decade, with a capacity to capture up to 1.6 million metric tons of CO2 annually, storing them permanently at the Belridge oil field. While this will significantly reduce emissions, it represents approximately 1% of California's goal to capture over 100 million tons of CO2 annually. Aera Energy has submitted the project's permit application to the US Environmental Protection Agency (EPA) earlier this year. Safety measures will be closely monitored by various regulators, including the EPA and the California Air Resources Board (CARB), ensuring the project's compliance with environmental standards.

Milestone Carbon Expands Carbon Sequestration Efforts in Texas Permian Basin

Milestone Carbon, a subsidiary of Milestone Environmental Services specializing in permanent carbon sequestration services, has entered into an agreement with Texas Pacific Land Corporation (TPL) to lease over 22,000 acres of land and pore space in the Permian Basin for geologic CO2 sequestration. This acreage, located in Loving and Midland counties, will support carbon capture and storage (CCS) initiatives at industrial facilities in West Texas, including natural gas processing and power plants. The move aligns with Milestone Carbon's focus on developing carbon hubs in the Delaware and Midland Basins, reinforcing its commitment to providing permanent carbon sequestration solutions for industrial emitters.

Milestone Carbon's expansion is bolstered by the recent development of a CO2 sequestration hub in the southwestern Midland Basin, capable of supporting multiple wells for permanent carbon dioxide storage. These hubs in the Midland and Delaware Basins aim to reduce emissions associated with various industries, such as natural gas processing and electricity generation. Additionally, they are expected to attract new industries and technologies like hydrogen, low-carbon ammonia, and low-carbon power to the West Texas region, fostering economic growth and employment opportunities. TPL, known for its extensive surface footprint, sees this partnership as a promising step toward sustainability and supporting the emerging carbon capture industry.

Yinson Production Pioneers Offshore Carbon Capture Project on FPSO Agogo in Angola

Yinson Production, a Malaysian FPSO leasing company, is embarking on an innovative offshore CCS pilot project on the FPSO Agogo in Angola, in collaboration with Azule Energy, a joint venture between BP and Eni. This pioneering initiative represents the world's first post-combustion carbon capture unit installed onboard an FPSO. It's designed as a pilot-scale demonstration unit in an offshore floating environment to assess technical readiness and operational proficiency, a vital step towards implementing CCS technology on a larger scale for Yinson Production's Zero Emissions FPSO projects.

The FPSO Agogo project includes several emissions-reducing technologies, such as electrification, advanced automation, digitalization, a combined-cycle power system, a seawater turbine generator, a hydrocarbon cargo tank blanketing scheme, and an integrated closed flare system. These innovations are expected to significantly reduce carbon emissions and enhance operational efficiency, positioning FPSO Agogo as a pioneering project in the industry.

Carbon Circle Holding AS, a carbon removal and energy engineering, procurement, and construction (EPC) company, has been chosen to design and construct the CCS plant. Construction is progressing as scheduled, with the first steel cut in September 2023.

YP's CEO, Flemming Grønnegaard, emphasized their commitment to exploring sustainable energy solutions and reducing greenhouse gas emissions. Yinson Production and Azule Energy entered into a firm contract for FPSO vessel provision, operation, and maintenance for the Agogo Integrated West Hub Development Project in Angola in February 2023, worth approximately $5.3 billion over 15 years, with the option to extend for an additional five years. The FPSO Agogo is expected to commence operations in the fourth quarter of 2025. This project reflects Yinson Production's dedication to advancing emission-reduction technologies in the offshore energy sector.

HD Hyundai Advances Carbon Neutrality Goals through Participation in Major CCS Project

HD Hyundai is taking significant steps toward its carbon neutrality goals by joining Korea's largest CCS project. The company's shipbuilding division affiliate, HD Hyundai Heavy Industries, recently signed a preliminary basic design contract with Hyundai Engineering & Construction for a carbon dioxide subsea underground storage platform as part of the 'Donghae Gas Field Utilization CCS Project.' This initiative, driven by the Korea National Oil Corporation and Hyundai Engineering & Construction, aims to capture and store 1.2 million tons of CO2 emitted annually from domestic industrial complexes in the East Sea Gas Field to achieve national greenhouse gas reduction targets.

HD Hyundai Heavy Industries is responsible for designing the offshore platform, while HD Korea Shipbuilding & Marine Engineering is developing the CO2 injection system. The Donghae Gas Field, where HD Hyundai Heavy Industries manufactured a production platform in 2004, will be transformed into Korea's largest CO2 storage site through this project. Moreover, both HD Hyundai Heavy Industries and HD Korea Shipbuilding & Marine Engineering have garnered recognition for their expertise in the marine CCS field through their participation in various initiatives and obtaining design certifications.

Notably, the companies have acquired Approval in Principle (AIP) from the American Bureau of Shipping (ABS) for the 2 million tons per year (2MTPA) floating CO2 subsea underground storage offshore platform model, further expanding their presence in overseas CCS markets. This strategic move underscores HD Hyundai's commitment to playing a crucial role in greenhouse gas reduction and leveraging its offshore plant expertise to build high-quality offshore platforms.

Aker Carbon Capture Expands Presence in Swedish CCS Market with New Contract

Aker Carbon Capture has secured a pre-FEED (pre-Front End Engineering Design) contract for a Just Catch application from a Swedish energy company, solidifying its presence in the Swedish market. This follows a previous feasibility study contract with Söderenergi, reinforcing Aker Carbon Capture's position in Sweden's growing carbon capture and storage (CCS) sector. The company's recent contract win for Ørsted in Denmark has generated significant interest in the Scandinavian market, particularly in Sweden, where sustainability goals are ambitious.

Sweden is committed to becoming carbon neutral by 2045, with a subsequent focus on achieving negative net CO2 emissions. To fulfill these objectives, Sweden is emerging as a global leader in generating high-quality carbon dioxide removal (CDR) credits through bioenergy with carbon capture and storage (BECCS). Many Swedish emitters are exploring BECCS opportunities, and Aker Carbon Capture aims to replicate successful CDR models similar to the Ørsted partnership in Sweden.

Aker Carbon Capture is currently delivering a Just Catch unit at Twence's waste-to-energy facility in the Netherlands. These projects align with Aker Carbon Capture's mission to standardize and modularize carbon capture plants, reducing footprint, costs, and energy consumption, particularly for mid-scale emitters. With seven ongoing carbon capture unit projects and a commitment to safe and reliable project delivery, the company is well-positioned to support Sweden's sustainable initiatives and growing customer base.

Schaper Energy Consulting is a professional engineering firm offering carbon strategy services to CCS site developers. Check out some examples of our projects here: https://schaperintl.com/carbon-strategies/

If you have questions or comments, please contact us at info@schaperintl.com.

We hope you enjoyed reading this week and hope to see you back next week for more!

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