[USA] EEI Joins Litigation for EPA’s New Clean Air Act Section 111 Rules

On May 24, 2024, EEI President and CEO Dan Brouillette announced EEI's decision to file a petition for review of the EPA’s final Clean Air Act Section 111 rules and a motion to intervene. [1] While supporting the EPA’s authority to regulate greenhouse gas emissions, EEI challenges the reliance on carbon capture and storage (CCS) technology as a compliance basis, arguing that CCS is not yet adequately demonstrated for broad industry deployment. Brouillette emphasized that no existing coal or natural gas power plants meet the EPA’s CCS requirements and that the implementation timelines are unrealistic. He stressed that EEI’s member companies are committed to reducing carbon emissions and investing in clean energy technologies, but regulations should be practical and achievable to avoid jeopardizing customer affordability and reliability. EEI seeks to ensure that the clean energy transition continues responsibly without relying on unproven technologies and unrealistic deadlines.

[1] https://www.eei.org/News/news/All/eei-joins-litigation-for-epa-clean-air-act-111-rules

[USA] Carbonvert and Castex Carbon Solutions Execute Operating Agreement for Offshore CO2 Storage Hub in Gulf of Mexico

On September 18, 2023, Denver-based Carbonvert Inc. and Castex Carbon Solutions LLC, a wholly owned subsidiary of Castex Energy, announced that they have executed an operating agreement with Louisiana to develop a 24,000-acre tract of land offshore of Cameron Parish in southwestern Louisiana to permanently store carbon dioxide more than a mile beneath the surface under an impermeable layer of cap rock.[1] The project, known as Cameron Parish CO2 Hub, will have a total storage capacity of more than 250 million metric tons of CO2 and will be operated by Castex. The companies plan to take CO2 from industrial emitters around the Cameron Parish area and “anticipated greenfield projects, notably ammonia and [liquefied natural gas] facilities.” The project has a first CO2 injection target of 2027. Currently, the companies are in discussions with potential customers about the transportation and storage of CO2 from industrial facilities in Lake Charles, Louisiana, and Port Arthur, Texas, as well as regional LNG sites.

[1] https://www.castexcarbon.com/press

[USA] DOE launches $2.6 billion in funding for carbon capture projects

On July 13, 2022, the Department of Energy (DOE) issued Notices of Intent to fund the Carbon Capture Demonstration Projects Program and the Carbon Dioxide Transport/Front-End Engineering Design (FEED) Program.[1] The programs will support carbon capture demonstration projects and expand regional pipeline networks to transport CO2 for storage or conversion into other uses. The two programs are funded by a more than $2.6 billion investment from the Bipartisan Infrastructure Law (BIL).

The $2.54 billion demonstration program will focus on integrated carbon capture, transport, and storage technologies and infrastructure that can be readily replicated and deployed at fossil energy power plants and major industrial sources of CO2, such as cement, pulp and paper, iron and steel, and certain types of chemical production facilities. Chosen projects will address technical, environmental, permitting, and financing challenges for commercial deployment. Proposed projects will need to show at least 95% carbon capture efficiency and verification of secure geologic carbon storage. In addition, the $100 million Carbon Dioxide Transport/Front-End Engineering Design program will design regional carbon dioxide pipeline systems to move CO2 from key sources to centralized locations.

[1] https://www.energy.gov/articles/biden-harris-administration-launches-26-billion-funding-programs-slash-carbon-emissions

[USA] Sempra Infrastructure, TotalEnergies, Mitsui, Mitsubishi plan large CCS project in Louisiana

On May 23, 2022, Sempra Infrastructure, a subsidiary of Sempra, announced that it had signed a participation agreement with TotalEnergies, Mitsui, and Mitsubishi for the development of the proposed Hackberry Carbon Sequestration (HCS) project in southwest Louisiana.[1] The HCS project aims to capture and store carbon dioxide from the Cameron LNG facility near Hackberry, Louisiana. Last year, the project filed an application with the Environmental Protection Agency for permanent storage of up to 2 million tons of carbon dioxide per year, either from the Cameron LNG facility as the “anchor source” or potentially from other industrial facilities in the area. According to the announcement, the development of the project is subject to a number of risks and uncertainties, such as securing all necessary permits. “We are excited to welcome new investment from Sempra Infrastructure and its partners in support of our state’s emissions reduction plans,” said Louisiana Governor John Bel Edwards (D).

[1] https://semprainfrastructure.com/news-and-events/news-releases/sempra-infrastructure-signs-participation-agreement-with-totalenergies-mitsui-mitsubishi-for-carbon-sequestration-project-in-louisiana

[USA] Cleco to retrofit large Louisiana power plant with CCS

Louisiana Governor John Bel Edwards (D) and the President and CEO of Cleco Corporate Holdings announced on April 11, 2022, that Cleco will invest $900 million to reduce carbon emissions at the largest of its nine electric generation units in Louisiana, Madison-3 at Brame Energy Center in Lena, LA.[1] Currently, the plant is fueled 70% by petroleum coke and 30% by Illinois Basin coal. Cleco Power, which serves 291,000 customers in Louisiana, will retrofit the Madison-3 plant with carbon capture technology to remove 95% or more of the plant’s carbon emissions. Named the “Diamond Vault,” the project plans to store the captured carbon in deep geological formations beneath the power plant. The company estimates that the project will create 30 to 40 direct new jobs and an average of 1,100 construction jobs over a three-year period.

Cleco will receive a $9 million congressional appropriation to help cover the cost of a front-end engineering and design (FEED) study. Cleco plans to raise capital for the project through tax credits, Department of Energy grants, and private equity investment. Construction is projected to begin by the end of 2025, and commercial operation is expected to begin no later than 2028.

[1] https://www.opportunitylouisiana.com/led-news/news-releases/news/2022/04/11/gov.-edwards-cleco-announce-$900-million-emissions-reduction-project-at-central-louisiana-power-facility

[USA] Companies announce plans to support CCUS and hydrogen hub in northern Appalachia

On February 3, 2022, EQT Corporation, Equinor, GE Gas Power, Marathon Petroleum (including its affiliate MPLX), Mitsubishi Power, Shell Polymers (a petrochemicals division of Royal Dutch Shell), and U.S. Steel announced that they have formed a new alliance to develop a hydrogen and carbon capture hub in Ohio, Pennsylvania, and West Virginia.[1] Historically, the northern Appalachian region has been the center of oil and natural gas production. Both EQT and Equinor have existing natural gas operations in Pennsylvania, and Marathon Power operates an oil refinery in Ohio.

The alliance plans to build out infrastructure for blue hydrogen, which pairs hydrogen produced from natural gas with carbon carputer, utilization, and storage (CCUS) technologies. According to the press release, the hub and associated infrastructure could generate thousands of new jobs, protect existing jobs, and help achieve significant reductions in carbon dioxide emissions. The group is working to establish a collaborative network to directly engage industry, labor, universities, communities, government, research institutions, non-profit organizations, and other groups in these efforts. The alliance participants intend to define the vision and plans for a regional CCUS/hydrogen hub in the coming weeks. IN-2-Market, a regional non-profit organization, will manage alliance activities and engagement with regional stakeholders.

[1] https://www.equinor.com/en/where-we-are/united-states/20220203-initiative-support-low-carbon-hydrogen-hub.html