Wabash Valley Resources (WVR) has secured an investment from OGCI Climate Investments (OGCI CI) to develop a 1.5-1.75 million tonnes per annum, carbon capture and sequestration (CCS) project, located outside of West Terre Haute, Indiana.
WVR, an affiliate of Phibro LLC, claims the project is expected to be the largest carbon sequestration project in the US, and will create the world’s first ammonia produced with near zero carbon footprint. Ethanol produced from corn using WVR’s ammonia will benefit from a significantly lower carbon intensity rating, making US ethanol and corn more valuable in international and California markets.
The project will capture and sequester close to 100% of the plant’s carbon dioxide (CO2) approximately 7000ft below the surface into the saline sandstone aquifer known as the Mount Simon Sandstone, and will have the capacity to be expanded to 1.75 million tonnes of CO2 per annum.
WVR acquired a world scale gasification plant in 2016, with plans to convert it to an ammonia production plant and carbon capture and sequestration project.
Simon Greenshields, President and Chief Executive Officer of Phibro LLC, said, “This innovative carbon capture and sequestration project will facilitate the production of green ammonia. Farmers and industrial end users alike will, for the first time, be presented with an opportunity to purchase ammonia produced in an environmentally conscious and sustainable manner and at an affordable price.”
WVR’s carbon capture and sequestration project will facilitate the production of fertiliser, from the co-located WVR plant, with a very low carbon footprint. Low carbon ammonia production lowers the carbon intensity of ethanol produced in the US, making it economically more competitive in California and Europe.
Nalin Gupta, Board Member of WVR, said, “Indiana’s business friendly environment and innovative culture were instrumental in facilitating the development of an ammonia and carbon sequestration project. The project shall utilise traditional clean energy financing vehicles, such as third party tax equity.”
Climate Investments is a $1+ billion fund investing in technologies and business models which lower the carbon footprint of the energy and industrial sectors and their value chains. The fund was created by the CEOs of the Oil and Gas Climate Initiative.
The amount of the investment was not disclosed.
Pratima Rangarajan, CEO of OGCI Climate Investments, said, “CCUS will be a crucial part of the low carbon economy. Our investment in Wabash Valley Resources is a tangible demonstration of our commitment to CCUS as a tool to decarbonise the industrial sector. We look forward to working with Wabash Valley Resources team as they develop this project and demonstrate that CCUS is available today as a tool to combat climate change.”
It was also announced last year the Wabash Integrated Gasification Combined Cycle (IGCC) plant will receive $10,235,774 in Department of Energy (DOE) funding, and $2,469,792 in non-DOE funding.