Velocys signs CCUS agreement with Oxy Low Carbon Ventures for its biorefinery project in Natchez
Type of post: NEWS.
Velocys,
Inc. has signed an agreement with Oxy
Low Carbon Ventures, LLC (OLCV, a wholly owned subsidiary of Occidental) to
capture carbon dioxide from Velocys’ planned Bayou Fuels biomass-to-fuels plant
in Natchez (Mississippi) and securely store it underground in a geologic
formation.
Press release: “Negative-emission fuel agreement”, 10/10/2019.
Related posts:
- “The USDA does not find significant
impact on the environmental assessment report for Velocys’ planned Mississippi biorefinery”, 13/8/2018.
Figure 1. Natchez aerial site view (extracted
from Velocys website)
OLCV will take, transport and store CO2
captured from the Bayou Fuels plant, when it is completed, enabling the
production of transportation fuels that have a net negative carbon intensity,
making it the first facility of its kind in the world. The Velocys biorefinery
will transform waste woody biomass into transportation fuels, such as diesel
for heavy trucks and sustainable aviation fuel, using Velocys’ proprietary
Fischer-Tropsch process. The integrated technical solution designed by Velocys
is ideally suited to carbon capture, usage, and storage (CCUS). The CO2
is captured before it enters the atmosphere. The combination of technologies
and expertise of both companies will enable the planed facility to produce net
negative carbon intensity fuels.
Integrating CCUS into the Bayou Fuels biorefinery will
increase certain targeted revenue streams, such as those derived from the
California Low Carbon Fuels Standard, and US 45Q tax credits that incentivise
the installation of carbon capture equipment on industrial facilities. This has
a meaningful positive impact on returns. It also helps to de-risk the project
and others that follow it. The proposed CCUS solution can be replicated at
other sites under development, including Velocys’ UK project which recently
submitted a planning application to build Europe’s first commercial scale
waste-to-jet fuel facility.