Our member White Energy announced today that they would partner with Occidental Petroleum Corporation to evaluate the economic feasibility of a carbon capture, utilization and storage project. The engineering study could change how energy companies utilize CO2 produced during the production process and recycle it to create a new, environmentally-friendly byproduct. This collaborative effort would capture carbon dioxide at White Energy’s Texas ethanol facilities for use by Occidental Petroleum in the Permian Basin. Carbon dioxide is useful in enhanced oil recovery operations (EOR), where it is used to allow trapped oil to flow more easily and efficiently. This new process would not only improve Occidentals extraction operations, but would also help reduce greenhouse gas emissions across the board.
“White Energy is committed to the development of clean, renewable fuels. This project would enable us to capture the CO2 produced at our plants and redeploy it in an environmentally responsible way,” said White Energy President and CEO Greg Thompson. “We’re excited about partnering with a diversified energy company like Occidental Petroleum. This project has the potential to provide strong environmental and economic benefits for everyone involved.”
The study would be conducted over a six-month period, examining the costs of building a carbon capture facility. Should the study prove fruitful, operations could begin as early as 2021 and would be designed to be eligible for 45Q tax credits and to meet California’s Low Carbon Fuel Standard Carbon Capture and Storage protocol. The FUTURE Act, which came into effect in 2018, supports the conversion of CO2 emissions from industrial sources to commodity products through a tax credit to projects beginning before 2024, allowing this project to qualify if completed on time.
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