Air Products has announced it has signed a cooperative agreement with the United States Department of Energy (DOE).

The industrial gas company will now move forward on phase one of a potential two-phase programme to conduct an engineering study and project plan to capture, concentrate and purify carbon dioxide (CO2) emitted from industrial operations for use in enhanced oil recovery work.

In October, the DOE announced several carbon capture related proposals to receive initial funding from the $1.4bn American Recovery and Reinvestment Act.

Air Products’ engineering study and plan will be among several to be evaluated in 2010 by DOE’s National Energy Technology Laboratory for potential additional funding of the overall project.

The two-phase project proposes to design and construct a state-of-the-art system to capture CO2 from Air Products’ steam methane reformers (SMR) located at a refinery in Port Arthur, Texas.

Phase two of the project would propose to recover and purify the CO2 for delivery via pipeline for enhanced oil recovery in Texas. The phase one funding, valued at $901,874 will also further define the method of CO2 delivery to the pipeline.

Wilbur Mok, Vice President of North America Tonnage Gases for Air Products commented, “We are pleased to have been awarded funding from DOE for this important project. We believe our effort is unique in that the proposed site has large scale SMRs located in close proximity to one another for this demonstration.”

“Air Products has been involved in several carbon capture demonstration projects around the world, and this extends our efforts with focus on the capture of CO2 from the industrial production of hydrogen,” he added.