What are the Major Benefits of the Project?
LCCE project will make Louisiana a leader in clean energy technology. The facility will implement a cutting-edge gasification technology that converts petroleum coke (“petcoke”) into clean energy products sold to industrial customers. The LCCE plant will be the world’s lowest-cost producer of methanol and the CO2 recovered here will be shipped by pipeline and used to increase oil production here in the Gulf region. This shovel-ready project will create thousands of jobs, capitalize on domestic feedstock, bolster Louisiana’s industrial base and protect the environment. Read more about the benefits of the Lake Charles Clean Energy project.
What is status of project?
LCCE has received air and water permits, and a 404 permit from the Army Corps of Engineers. An environmental impact study is currently underway. LCCE was awarded $1.56 billion of Gulf Opportunity Zone and Ike tax-exempt bonds by the Louisiana State Bond Commission. The LCCE project is also one of three large-scale industrial carbon capture projects that were awarded a Department of Energy (“DOE”) grant as part of an effort to capture carbon dioxide from industrial sources for storage or beneficial use. The project’s DOE grant is for approximately $261 million. In addition, the project has been awarded a $128 million federal investment tax credit under IRS Section 48B. Recently, LCCE announced major product agreements with key LCCE customers, which is a major milestone for reaching the commercial financing of the project expected in the second quarter of 2013 and construction of the state-of-the-art LCCE plant early that year.
How is using petcoke clean?
Today, about 70 percent of Gulf Coast petcoke is exported – sometimes just across the border – and often burned without controls. The LCCE plant will protect the environment by using advanced gasification technology to avoid harmful emissions while extracting energy from petcoke. LCCE will cleanly convert the feedstock chemically under high temperature and pressure to create clean synthesis gas with very low emissions. This low Btu synthesis gas can then be processed into clean end products.
What is CO2 EOR?
Carbon dioxide enhanced oil recovery is a proven technique for increasing oil production at depleting oil fields and storing the CO2 to mitigate climate change concerns. More than 100 million barrels of oil, about 5 percent of U.S. production, are currently produced from CO2 EOR. EOR production utilizes about 70 million tons of CO2 per year, most of which is extracted from natural CO2 reservoirs. The CO2 is transported in more than 3,900 miles of CO2 pipeline infrastructure in the U.S. Learn more about how LCCE is going to provide CO2 for EOR.