Industrial Carbon Capture and Storage (ICCS) -
Recovery Act: The Lake Charles CCS Project
Project No: FE0002314
Program Background and Project Benefits
Carbon dioxide (CO2) emissions from industrial processes, among other sources, are linked to global climate change. Advancing development of technologies that capture and store CO2 that would otherwise reside in the atmosphere for extended periods is of great importance. Advanced carbon capture and storage (CCS) technologies offer significant potential for reducing CO2 emissions and mitigating global climate change, while minimizing the economic impacts of the solution.
Under the Industrial Carbon Capture and Storage (ICCS) program, the U.S. Department of Energy (DOE) is collaborating with industry in cost sharing arrangements to demonstrate the next generation of technologies that will capture CO2 emissions from industrial sources and either sequester those emissions or beneficially reuse them. The technologies included in the ICCS program have progressed beyond the research and development stage to a scale that can be readily replicated and deployed into commercial practice within the industry.
The project will result in the large-scale recovery, purification, and compression of more than four million tons of CO2 per year. The sale of CO2 from the ICCS project for use in independent EOR operations by Denbury affords a cost-effective means to increase domestic oil production while using advanced CCS technology to beneficially use the recovered CO2. On a global scale, petroleum coke currently being exported from the U.S. to regions where little, if any, environmental controls are required or implemented will now be used in a domestic chemical project that achieves superior environmental performance and captures CO2 for beneficial use.
With the completion of the Green Pipeline by Denbury, naturally occurring CO2 taken from the Jackson Dome in Mississippi will be used for EOR in oil fields in Texas. Carbon dioxide from the project that is compressed and delivered to the Green Pipeline will represent approximately 25 percent of the daily amount of CO2 that Denbury will use in these oil fields. By using the anthropogenic CO2 from the Lake Charles plant, Denbury will be able to reduce the amount taken from the Jackson Dome and prolong the life of this naturally occurring source of CO2. Additionally, a comprehensive MVA program will be implemented in the Hastings oil field that will confirm the long-term sequestration of injected CO2 in the EOR project application.
The infrastructure developed by the ICCS project could potentially enable other industrial and power plant CO2 sources in the Lake Charles industrial community to commercially dispose of CO2 in Gulf Coast EOR operations. Expansion of EOR in the Gulf Region will promote greater energy security by increasing domestic energy supplies. The Lake Charles gasification facility and CCS project alone are expected to provide up to 1,100 construction jobs and 200 permanent operation jobs, as well as millions of dollars in severance taxes and royalties to the state of Texas.
The project goal is to advance CCS technologies from the demonstration stage to commercial viability. The project objectives are to design, construct, and operate an integrated system of industrial-scale CO2 capture, compression, and sequestration from a petroleum coke gasification plant for the beneficial reuse of CO2 through EOR.