Starwood Energy, OGCI Climate Investments and Elysian Ventures launch new Carbon Capture Project

Apr 05 2020


Large-scale commercial project will be one of the world's first to capture CO2 from a natural gas power plant and seeks Section 45Q tax credits.

Starwood and OGCI CI will co-invest in the initial development of the project, which will use commercially available CO2 capture technology and is expected to capture 90% of the CO2 emissions from an existing power facility. The captured CO2 will then be used in enhanced oil recovery and permanently sequestered in an existing oil field. The project will be jointly developed by Starwood and Elysian Ventures.

The project will seek to use Section 45Q tax credits for the deployment of carbon capture projects once final regulations are implemented, including potential upcoming legislative enhancements. The project will be non-recourse financed, with construction of the facility expected to commence in early 2021.

"We believe that the deployment of large-scale carbon capture for enhanced oil recovery is a unique opportunity to further enhance the value of critical power infrastructure, enabled by historically low natural gas prices and incentives for carbon sequestration," said Himanshu Saxena, CEO of Starwood.  "We are excited to partner with OGCI CI in their mission to catalyze industry response to climate change, and to work with our partners at Elysian in developing this important project.  Once constructed, this will become a premium asset and showcase for the deployment of this technology.  We look forward to this project, and to exploring further carbon capture opportunities across multiple sectors, consistent with our ESG goals."

Pratima Rangarajan, CEO of OGCI Climate Investments, said, "We are pleased to partner with Starwood Energy and Elysian Ventures in a tangible demonstration that carbon capture is available and ready to use today.  This project, along with our other three CCUS project investments, aims to keep over nine million tons a year of carbon dioxide from the atmosphere. That's the equivalent of taking almost two million cars off the road."

Bret Logue, Principal & Co-Founder of Elysian commented, "We at Elysian have been seeking transformational projects to develop that are financeable, replicable, and that will eliminate millions of tons of carbon emissions annually. Our partnership with Starwood and OGCI provides the technical and commercial experience and financial backing – from development through construction to operation – that immediately puts us on the road to achieving this goal."

Starwood
OGCI Climate Investments


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Issue 74 - Mar - Apr 2020

CCUS in the U.S. - CCUS: the role of U.S. leadership .. A roadmap to at-scale CCUS deployment in the U.S. .. Options for negative carbon emissions in California .. ION Clean Energy - a billion tonnes of CO2 by 2050 CO2 DataShare launches open, digit.....


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