Lucid Energy to develop largest Permian Basin CCS project

Jan 12 2022

Lucid Energy Group has received EPA approval to capture and store CO2 from its Red Hills gas processing complex in Lea County, New Mexico.

The plan, following subsequent approval by the Internal Revenue Service, will provide section 45Q tax credits for the sequestration and permanent storage of CO2 in Lucid’s existing and permitted disposal wells.

The monitoring, reporting and verification (MRV) plan documents Lucid’s means of safely ensuring permanent carbon capture and storage of CO2 removed from the natural gas stream during the processing and treating of natural gas from its customers. The plan is scalable and provides growth capacity, enabling Lucid to offer a lower-carbon-intensity service to its customers and reduced carbon footprint to its stakeholders. 

“Since our entry to the Delaware Basin five years ago, Lucid has targeted investments in large-scale gas treating assets, which empower our customers to develop highly economic drilling locations with associated off-spec gas,” said Lucid CEO Mike Latchem. “This strategy has proven beneficial for all stakeholders, as Lucid currently removes more CO2 from Permian Basin shale production than any other midstream operator. In turn, Lucid is the perfect candidate to develop the largest CCS project in the Permian Basin by simply modifying and expanding our existing operations. We are committed to finding safe, creative and effective ways to serve the growing needs of our customers while reducing our environmental footprint.”

Lucid Energy

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