BP plc is teaming up with multinational chemical giant Linde plc to advance a carbon capture and storage (CCS) project for the Texas industrial complex near Houston.
As envisioned, the project would enable Linde to produce low-carbon hydrogen at its existing facilities. The project also could support carbon dioxide (CO2) storage captured from other industrial plants, paving the way for large-scale decarbonization.
The production would be sold to customers along Linde’s hydrogen pipeline network in the Greater Houston area under long-term contracts.
“The energy expertise in Texas and strong supply chains have been generations in the making,” said BP America Chairman Dave Lawler. “This new low carbon energy project will help us leverage those strengths for the next chapter of the energy transition.
“In particular, it can help decarbonize hard-to-abate industries for the greatest potential impact on emissions while protecting jobs.”
The overall development, expected to be operational as early as 2026, could ultimately store up to 15 million metric tons/year of carbon across multiple onshore geologic storage sites, BP noted. No financial details were disclosed.
Under the joint venture, BP would undertake appraisal, development and permitting for the geological storage sites to permanently sequester CO2. BP’s Trading and Shipping business would provide custom solutions for the project, including renewable power and certified natural gas, along with commodity trading and price risk management expertise.
BP is boosting its alternative energy investments to $5 billion by 2030, a 10-fold increase from renewable-related spend in 2020. For example, Lightsource BP, which became part of the portfolio in 2017, has completed its first Texas solar farm in Lamar County, which generates 260 MW.
Houston also is a major hub for BP’s marketing and trading business, which buys and sells more than 16 Bcf/d of natural gas. BP has been the perennial North American leader in natural gas marketing, according to NGI’s quarterly survey.
The collaboration with Linde would be another step by BP to develop its low-carbon businesses as it works to become a net-zero carbon company by 2050. Among other things, BP is evaluating other large-scale CCS and hydrogen projects for industrial clusters in the United States. In addition, it is working on reducing carbon from the Teesside facility in the industrial heart of the UK.
Linde plans to use proprietary technology and operational expertise to capture and compress the CO2 from its hydrogen production facilities. Linde has hydrogen production infrastructure and a storage cavern that is connected through its pipeline network across the Texas coast.
‘Climate Neutrality By 2050’
Linde has big ambitions to reduce its global carbon footprint, said Linde Gases North America President Dan Yankowski.
“Linde is committed to lowering absolute carbon emissions 35% by 2035 and reaching climate neutrality by 2050,” Yankowski said. “Capturing the CO2 from our hydrogen production plants in the Houston area will be a significant step toward achieving these goals…More broadly, Linde is well positioned to enable similar projects, be it in the Gulf Coast, where we operate two hydrogen pipelines and a hydrogen storage cavern or elsewhere in the U.S.”
The BP-Linde CCS project would be one of several planned for the country, with most centered in the Texas petrochemical region near Houston.
Last month Occidental Petroleum Corp. and Enterprise Products Partners LP said they were designing a CO2 transportation and sequestration hub that would serve oil and gas operators in the area. Enterprise and Chevron Corp. last September said they were evaluating possible carbon sequestration projects for the Gulf Coast and for the Midcontinent.
Meanwhile, ExxonMobil is spearheading a $100 billion proposed carbon capture utilization and storage (CCUS) project to pull emissions from the industrial complex along the Houston Ship Channel.
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