Texas carbon capture plant facilitates the production of oil
The Trump administration remains committed to reducing greenhouse gases while promoting the energy industry, said Energy Secretary Rick Perry on Thursday.Hopefully, the economics of a system like this can make it possible to have more such plants. It will be interesting to see what NRG's return on this investment turns out to be.
Perry joined Texas Gov. Greg Abbott at NRG Energy’s Petra Nova carbon capture plant in Fort Bend County, where the the two Texans heralded the plant’s official opening as a the dawn of a new energy era of innovation under President Donald Trump.
The plant, the world’s largest and the only one of its kind in the United States, started operating in late 2016. It captures carbon dioxide from a coal-fired power plant, runs it through a chemical process to extract carbon and sends it through a pipe 80 miles southwest to help with enhanced oil recovery, a process that injects carbon and water underground to force oil to the surface.
The system cost $1 billion to build, and its revenue is tied to selling the oil it helps recover–a plan that was conceived when oil prices hovered around $100 a barrel. While NRG has said it does expect to take on a project like this again, on Thursday energy executives and elected officials celebrated Petra Nova as a good example of cleaner production of fossil fuel energy.