Welcome to this week's edition of our carbon capture and sequestration newsletter! We delve into Houston's rise as a hub for CCS innovations, spotlighting Capsol Technologies' new office and the ambitious Bayou Bend project. We also cover SLB's acquisition of Aker Carbon Capture, marking a significant step in industrial decarbonization.
Join us as we explore these groundbreaking developments and more.
ExxonMobil Teams Up with Technip Energies and Turner Industries for Major Carbon Capture Project in Louisiana
ExxonMobil has awarded a contract to the Franco-American consortium of Technip Energies and Turner Industries to engineer, procure, and construct a cutting-edge carbon capture, utilization, and storage (CCUS) system in the US. This initiative, set to launch in 2026, targets Nucor Corporation’s direct reduced iron (DRI) plant in Convent, Louisiana. The Technip-Turner consortium, having previously completed the facility’s front-end engineering and design, will now advance the project with Technip handling engineering and procurement and Turner managing construction.
The CCUS system will condition, compress, transport, and store up to 800,000 tonnes of CO2 annually, significantly reducing greenhouse gas emissions by up to 80% compared to traditional iron production methods. This project will integrate with ExxonMobil's existing carbon transport and storage infrastructure in Louisiana, enhancing the region's decarbonization efforts.
Houston Emerges as Global Leader in Carbon Capture and Storage Innovations
Houston is fast becoming a hub for low-carbon solutions, with recent announcements showcasing significant advancements in carbon capture and storage (CCS) technologies. Capsol Technologies ASA, a Norwegian CCS company, has opened an office in Houston, citing the region's robust infrastructure and favorable U.S. policies as key factors. One of the region's standout projects is the Bayou Bend CCS initiative, a joint venture involving Chevron, Equinor, and TotalEnergies, which aims to store one billion metric tons of CO2 underground along the Texas Gulf Coast.
Additionally, Chevron is exploring integrating its hydrogen efforts with Bayou Bend, while Ørsted and ExxonMobil have secured substantial funding from the U.S. Department of Energy for their decarbonization projects.
Ørsted plans to use captured CO2 to produce e-methanol, while ExxonMobil's Baytown Olefins Plant Carbon Reduction Project will utilize hydrogen to produce ethylene.
ExxonMobil's acquisition of Denbury Inc. has further bolstered its CCS capabilities, with plans to develop a massive CCS hub in Houston. SLB is also increasing its investment in CCS, acquiring majority ownership of Aker Carbon Capture to accelerate the deployment of carbon capture technologies across high-emitting sectors.
SLB Acquires Major Stake in Aker Carbon Capture to Drive Industrial Decarbonization
In a strategic move announced in March, SLB has acquired an 80% stake in Aker Carbon Capture Holding AS (ACCH) for NOK 4.12 billion (approximately $379.4 million). This new joint venture, headquartered in Oslo, Norway, aims to accelerate the adoption of carbon capture technologies for industrial decarbonization. Combining ACC’s amine-based Advanced Carbon Capture technologies, such as Just Catch and Big Catch, with SLB’s non-aqueous solvent and emerging sorbent-based solutions, the partnership is poised to address carbon capture needs at both medium and large scales, including offshore gas turbines.
The transaction brings significant leadership changes, with Egil A. Fagerland stepping down from his CEO role at ACC to lead the joint venture as CEO. Idun Heier has been appointed as the new CFO, and Valborg Lundegaard, former CEO of ACC, has been named the new CEO of ACC. The combined expertise and technology portfolios of SLB and ACC promise to pave the way for other emitters to follow, making significant strides toward a net-zero future.
Equinor and GRTgaz Forge Partnership to Decarbonize French Industry with CO2 Transport System
Switzerland-based Climeworks has announced the next phase of its carbon capture efforts with its advanced Generation 3 direct air capture (DAC) technology. This new technology can capture twice the CO2 per module compared to its predecessor while halving energy consumption and associated costs. The breakthrough is achieved through an upgraded filter that enhances surface contact with CO2, increasing capture efficiency and reducing operational time. The CarbonBrief's "The State of Carbon Dioxide Removal 2024" report highlights the significance of advancements like Generation 3 for corporate investors aiming to offset emissions. Climeworks’ Orca plant in Iceland, which uses second-generation technology to capture and permanently store carbon, set the stage for its larger Mammoth plant, which captures up to 36,000 tons of carbon annually.
Commercial-scale DAC is gaining traction, partly due to supportive policies such as the Bipartisan Infrastructure Law and the Inflation Reduction Act in the U.S., which incentivize the adoption of carbon capture technologies. The Biden administration’s mandate for carbon capture technology in hard-to-abate sectors by 2039 further underscores this momentum. However, maintaining progress requires clear policies and certifications for the carbon market, along with additional federal subsidies. Climeworks is also expanding its reach with a $50 million grant from the DOE’s Regional Direct Air Capture Hubs program to establish a DAC facility in Louisiana, slated to begin construction in 2026 using Generation 3 technology.
EverLoNG Launches Second Ship-Based Carbon Capture Test on LNG-Powered Sleipnir
The EverLoNG project has launched its second test campaign with a ship-based carbon capture (SBCC) prototype on Heerema Marine Contractors’ LNG-powered crane ship, Sleipnir. This campaign, starting in June 2024, will test the SBCC prototype developed by Carbotreat and VDL Carbon Capture over a five-week period, focusing on capturing and storing CO2 on the vessel. The CO2 will be stored as a liquid in a specially designed container, which will be offloaded and transported to an industrial site for utilization or permanent geological storage.
Researchers will evaluate the impact of SBCC on Sleipnir’s infrastructure and emissions, as well as the effects of motion and exhaust gas impurities on capture performance. The system allows for remote performance monitoring from shore, providing real-time data to enhance safety and efficiency. Heerema Marine Contractors’ Senior Project Manager, Cees Dijkhuizen, emphasized the significance of this technology for reducing maritime emissions, particularly on LNG-powered vessels like Sleipnir.
Following a successful first test on the Seapeak Arwa, which demonstrated an 85% CO2 capture rate, the EverLoNG team is optimistic about the Sleipnir demonstration. EverLoNG Project Coordinator, Marco Linders, highlighted the importance of international collaboration in achieving emission reductions, underscoring the project's commitment to advancing carbon capture technology in the maritime sector.
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!