NextDecade Corp. will use carbon capture and storage (CCS) technology to reduce expected carbon dioxide equivalent emissions by about 90% at its proposed Rio Grande liquefied natural gas (LNG) export project in Brownsville, TX.
Management said Tuesday that the Houston-based company additionally is exploring options to address what would be the remaining emissions, as potential customers are increasingly looking at sourcing cleaner energy.
“Through numerous and ongoing conversations with our customers, it is clear the work we are doing here also aligns with many of our global LNG customers’ corporate values and environmental goals,” spokeswoman Ashley Hemmer said.
NextDecade plans to make a positive final investment decision (FID) next year on the project, which at full build-out would have a combined capacity of 27 million metric tons/year (mmty), equivalent to about 3.6 Bcf/d of gas, from five liquefaction trains.
The project could come on line with less capacity, as the FID would be for a minimum of two trains with combined capacity of 10.8 mmty, Patrick Hughes, NextDecade’s senior vice president of strategy and business development, told NGI Wednesday.
The company declined to say if the use of CCS technology would increase costs.
However, CEO Matt Schatzman said Tuesday that “competitively priced LNG and responsible environmental stewardship are not mutually exclusive.”
NextDecade would use proven CCS technology in conjunction with its proprietary processes to reduce emissions, management said. Multiple options were evaluated to reduce emissions.
NextDecade has signed a 2 mmty long-term supply deal with Royal Dutch Shell plc, the world’s largest LNG trader, but it would need to sign additional deals to get bank financing for construction.
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