Plans have been unveiled for an industrial scale carbon capture pipeline system that could transport and sequester up to eight million metric tonnes of carbon dioxide (CO2) per year.
Valero Energy Corporation and BlackRock Global Energy & Power Infrastructure Fund II have teamed up with Navigator Energy Services for project that will initially span more than 1,200 miles, across five Midwest states in the US.
In this initial stage, the pipeline will have the capability of permanently storing up to 5 million metric tonnes of carbon dioxide per year, scale up to eight million metric tonnes will decided upon third party customer feedback.
Renewable fuel producer Valero is expected to become an anchor shipper by securing a majority of the initial available system capacity. Navigator is expected to lead the construction and operations of the system and anticipates operations to begin late 2024.
In the coming months, Navigator will seek additional commitments to utilis the remaining capacity via a binding open season process.
“This project demonstrates our leadership in energy transition through innovation in renewables,” said Joe Gorder, Valero Chairman and CEO. “We continue to expand our long-term competitive advantage with investments to produce lower carbon fuels.”
“We are very excited to partner with Valero and Navigator in the development of this project,” added Mark Florian, Head of BlackRock’s Global Energy & Power Infrastructure team.
“Carbon capture infrastructure is a key part of reducing global carbon dioxide emissions, and we look forward to executing this important project with high-quality industry partners and creating a strong investment for our funds.”
Matt Vining, Navigator’s CEO, concluded, “Now is the time for industry-leading market participants to join forces to complete an environmentally focused midstream project of this size and scale. Harnessing our collective resources and strengths will create a unique infrastructure project that changes the way carbon emissions are managed.”