JX Nippon Oil & Gas Exploration Corporation has announced the restart of its Petra Nova carbon capture facility, believed to be one of the largest in the world.
Located in Texas, the site captures carbon dioxide (CO2) from the flue gas of the thermal power plant and injects that captured CO2 into an oil field to increase in crude oil production.
Once fully operational, the plant can capture 1.4 million metric tonnes of CO2 per year.
To further expand its knowledge of carbon capture, utilisation, and storage (CCUS) technology, JX Nippon last September acquired an additional 50% interest in Petro Nova Parish Holdings, making it a consolidated subsidiary.
According to various sources, the plant was shut down in 2020 due to plummeting oil prices during the coronavirus pandemic (Covid-19). In turn, this made using the CO2 capture in nearby oil fields unprofitable.
However, JX Nippon has now said the plant will be both a stable supply of energy and materials as part of a wider goal to realise a carbon-neutral society.
The plant’s location in the US should also make it eligible for a few incentives laid out in the Inflation Reduction Act. Specifically, the tax credit will more than likely be of interest.
In July 2023, the tax credit was raised to $60 per metric tonne for CO2 used in enhanced oil recovery or other industrial operations and to $85 per metric tonne for permanently stored CO2, from $35 per metric tonnes and $50 per metric tonne, respectively.
CO2 Summit 2023
Shortages and sourcing challenges are the headline stories everyone’s talking about in CO2 supply. But the whole carbon dioxide value chain is transforming – as this story itself demonstrates.
Applications are not only emerging and evolving but demanding more of the industry and its sourcing too. That calls for new thinking in CO2 storage and distribution, but it also raises questions over the tracking and management of supply chains. How we see CO2 is changing, shifting from waste disposal to a value chain in its own right. This will see the tonnage utilisation of CO2 evolve beyond recognition.
Join gasworld this September as our North American CO2 Summit 2023 assesses the threats, challenges and opportunities ahead in carbon dioxide – how we find it, source it, purify it and deliver it. Learn about the changing face of CO2; the opportunities in direct air capture (DAC); supply chain strategies; carbon credits and legislation; and so much more.
Tickets are selling fast and sold-out early last year, so book your place now. For more information and how to attend, visit https://gasworldconferences.com/conference/north-american-co2-summit-2023-indianapolis/