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

Starwood Energy Group Global, Inc has announced that it has finalised agreements with OGCI Climate Investments (“OGCI CI”) to invest in the development of a large-scale carbon capture facility to be integrated with a natural gas power plant.

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, LLC (“Elysian”).

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 catalyse 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.”

Source: Global Energy World