Page 11 - NorthAmOil Week 09 2022

NorthAmOil NEWS IN BRIEF NorthAmOil

higher level than industry standard. Investing and planning for the Baytown project are Energy Partners enter into
in fibre optic technology demonstrates EPIC’s ongoing and, subject to stakeholder support,
intent to be an industry leader, not only in regulatory permitting and market conditions, agreement to pursue carbon
meeting customer expectations, but also in a final investment decision is expected in two
safety and environmental protection.” to three years. capture and sequestration
EPIC MIDSTREAM HOLDINGS, March 02, 2022 EXXONMOBIL, March 01, 2022
Neste to establish a joint opportunities with the Port
ENERGY TRANSITION of Corpus Christi
ExxonMobil planning venture for production Talos Energy today announced that the
of renewable fuels in
company and Howard Energy Partners (HEP)
hydrogen production, the United States with have entered into an option agreement with
the Port of Corpus Christi Authority to pursue
carbon capture and storage Marathon Petroleum commercial carbon capture and sequestration
(CCS) opportunities on-site at the Port of
at Baytown complex Neste has signed definitive agreements for Corpus Christi. The project will be known
as the Coastal Bend Carbon Management
ExxonMobil said today it is planning a the establishment of a 50/50 joint venture Partnership. During the initial nine-month
hydrogen production plant and one of with US-based Marathon Petroleum. The evaluation period, the parties will identify and
the world’s largest carbon capture and joint venture will produce renewable diesel mature CCS project solutions on Port-owned
storage projects at its integrated refining following a conversion project of Marathon’s lands. With a diverse industrial footprint at
and petrochemical site at Baytown, Texas, refinery in Martinez, California. The closing the Port, transportation infrastructure and
supporting efforts to reduce emissions from of the joint venture is subject to customary expertise from HEP, and subsurface and
company operations and local industry. closing conditions and regulatory approvals, sequestration capabilities from Talos, the
“Hydrogen has the potential to significantly including obtaining the necessary permits, parties are positioned to offer a local, fully
reduce CO2 emissions in vital sectors of the which depend upon certification of a final integrated CCS project to customers in the
economy and create valuable, lower-emissions Environmental Impact Report. region.
products that support modern life,” said Joe Neste’s total investment will amount to The Port of Corpus Christi is a major
Blommaert, president of ExxonMobil Low approximately EUR0.9bn ($1.0bn), inclusive strategic export hub and one of the largest
Carbon Solutions. “By helping to activate new of half of the total project development costs ports in the United States, accounting for
markets for hydrogen and carbon capture and projected through the completion of the over $200bn of economic impact from
storage, this project can play an important project. The project is expected to increase approximately 7,000 vessel shipments
part in achieving America’s lower-emissions Neste’s renewable products capacity by slightly annually. Port-related employment accounts
aspirations.” over 1mn tonnes (365mn US gallons) per for approximately 100,000 jobs in the
The proposed hydrogen facility would annum. Production of renewable diesel is Coastal Bend area. The Coastal Bend Carbon
produce up to 1bn cubic feet per day of expected to come online in the second half of Management Partnership aims to provide the
“blue” hydrogen, which is an industry term 2022. The facility is planned to reach its full Port’s more than 200 customers with a turn-
for hydrogen produced from natural gas and annual nameplate capacity of 2.1mn tonnes key CCS solution to participate in meaningful
supported by carbon capture and storage. The (730mn US gallons) by the end of 2023. decarbonisation efforts.
carbon capture infrastructure for this project “This is a very important step in our The lease option agreement encompasses
would have the capacity to transport and store renewables growth strategy execution. The approximately 13,000 acres for CCS project
up to 10mn metric tons of CO2 per year, more location of the facility is in the middle of the evaluation, with an initial goal to sequester
than doubling ExxonMobil’s current capacity. growing renewable fuel market in California. 1.0-1.5mn metric tonnes of CO2 per year
Using hydrogen as a fuel at the Baytown The partnership will further strengthen our of industrial emissions into saline aquifers
olefins plant could reduce the integrated footprint in the United States, as we will have utilising an estimated total storage capacity
complex’s Scope 1 and 2 CO2 emissions by up a broad value chain that covers feedstock of 50-100mn metric tonnes. Based on proof
to 30%, supporting ExxonMobil’s ambition sourcing to renewables production and sales of concept and market demand, the parties
to achieve net zero greenhouse gas emissions in the US. We are thrilled to partner with may expand the project to Regional Hub scale,
from its operated assets by 2050. It also Marathon: we both share an ambition in with the capability to sequester 6 – 10mn
would enable the site to manufacture lower- offering more high-quality, lower-emission metric tonnes per year of the approximately
emissions products for its customers. Access renewable products, thus helping customers 20mn metric tonnes per year of total regional
to surplus hydrogen and CO2 storage capacity to achieve their sustainability goals,” says Peter emissions. HEP’s Javelina midstream system
would be made available to nearby industry. Vanacker, Neste’s president and chief executive is directly connected to over half of the
The project would form ExxonMobil’s officer. total regional emissions with approximately
initial contribution to a broad, cross-industry NESTE, March 01, 2022 60 miles of existing infrastructure, which
effort to establish a Houston carbon capture is ideally situated for gathering activities
and storage hub with an initial target of about Talos Energy and Howard throughout the Port area.
50mn metric tons of CO2 per year by 2030, TALOS ENERGY, February 28, 2022
and 100mn metric tons by 2040. Evaluation

Week 09 03•March•2022 www. NEWSBASE .com P11