Velocys, Inc., a wholly owned subsidiary of Velocys plc, has signed an agreement with Oxy Low Carbon Ventures, LLC (OLCV), to capture carbon dioxide (CO2) from Velocys’ planned Bayou Fuels biomass-to-fuels project in Natchez, Mississippi, and store it underground.
OLCV will take, transport and store the CO2 captured from the Bayou Fuels facility, to enable the production of transportation fuels that have net negative carbon intensity.
The Bayou Fuels project will take waste woody biomass and convert it into transportation fuels. The integrated technical solution designed by Velocys is ideally suited to carbon capture, usage and storage (CCUS); the CO2 is captured before it enters the atmosphere.
OLCV is uniquely positioned to transport and store the CO2 by leveraging Occidental’s industry leadership in CO2 storage and utilisation. The combination of CCUS and Occidental’s knowledge in storing CO2 enables the facility to produce net negative carbon fuels.
“We want this facility, and others that will follow, to be as environmentally friendly as possible and offer attractive opportunities for partnerships with major energy companies,” said Henrik Wareborn, Velocys’ CEO.
“We don’t just want to deal with waste materials and produce cleaner burning fuels – we want the process that produces the clean fuels to be as sustainable as possible as well.”
“Carbon capture, utilisation, and sequestration is essential to reducing the carbon intensity of the transport sector and achieving global climate goals,” said Richard Jackson, OLCV’s President.
“This project illustrates how CCUS can enable production of zero-carbon and negative-carbon fuels.”
The proposed CCUS solution can be replicated at other sites under development, including Velocys’ UK project which recently submitted a planning application.
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