Air Products has signed two agreements with Valero Energy Corporation and Denbury Onshore, LLC. The new alliances are expected to precipitate the firm’s carbon capture and sequestration project in Port Arthur, Texas.

Thanks to these latest agreements, Air Products’ CO2 will be delivered via a pipeline owned by Denbury Green Pipeline. The pipeline stretches between Texas to Denbury Onshore and is expected to begin in late 2012. The sequestered carbon dioxide is to be put to use by Denbury Onshore in enhanced oil recovery.

Wilbur Mok, Vice President of North America Tonnage Gases for Air Products, described the deals as 'key'. He explained, “The signing of these agreements is a key step in moving this important project forward. Air Products has been an integral team member of several carbon capture projects around the world. We are a technology solutions provider and at Port Arthur we will have the opportunity to demonstrate these capabilities at a large industrial scale.$quot;

“We look forward to working with Denbury and thank Velero for its co-operation and support to working with Denbury and thank Valero for its co-operation and support at the Port Arthur location,” added Mok.

Terms

According to the agreements, Air Products will design, construct and operate a state-of-the-art system to capture CO2 from its two stream methane reformers (SMR) located within the Valero Refinery in Port Arthur. The carbon dioxide removal technology will be retrofitted to the SMRs, which produce hydrogen to assist in the making of cleaner burning transportation fuels by refinery customers on Air Products’ Gulf Coast hydrogen pipeline network.

Approximately one million tons of CO2 annually will be recovered, purified and delivered by Air Products via a pipeline owned by Denbury Green Pipeline-Texas, LLC for injection into Denbury Onshore’s enhanced oil recovery projects in Texas.