June 14, 2010

$1bn Carbon Capture projects

Can the US afford to spend billions of dollars to invest in this risky business of carbon capture and storage (CCS) projects?

So far, the US Department of Energy's CCS investment is moving along as 3 companies -- Air Products & Chemicals, Archer Daniels Midland (ADM) and Leucadia Energy -- are now on their phase II activities. DOE announced last week that the three companies will receive up to $612 million from the American Recovery and Reinvestment Act - matched by $368 million in private funding.

The projects - located in Texas, Illinois, and Louisiana - were initially selected in October 2009 for phase one research and development grants. The projects are expected to capture and store 6.5 million tons of CO2 per year, and increase domestic production of oil by more than 10 million barrels per year by the end of the demonstration period in September 2015.

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