NextDecade launches NEXT Carbon Solutions CCS unit
In the efforts to achieve net-zero emissions, U.S. LNG export project developer NextDecade launches NEXT Carbon Solutions, a subsidiary that is to develop a large carbon capture and storage (CCS) project at the Rio Grande LNG.
The project is expected to reduce permitted CO2 emissions at Rio Grande LNG by more than 90 per cent without major design changes to the Rio Grande LNG project.
It is to enable the capture and permanent storage of more than five million tonnes of CO2 per year.
This would result in Rio Grande LNG as the greenest LNG project in the world, NextDecade believes. The company is working with sustainable Permian and Eagle Ford producers seeking to supply responsibly sourced natural gas (RSG) to Rio Grande LNG.
Besides developing CCS, the project is also set to advance proprietary processes to lower the cost of utilizing CCS technology; help other energy companies to reduce their greenhouse gas (GHG) emissions associated with the production, transportation, and use of natural gas; and generate carbon offsets to support companies in their efforts to achieve net-zero emissions.
The company forecasts that developing the CCS project at the same time as the Rio Grande LNG project will result in 60 to 80 per cent less capital costs than retrofitting an operating LNG facility.
All-in costs of the CCS project are expected to be $63 to $74 per metric tonne of CO2 before any benefit from Section 45Q tax credits. Including the benefit of Section 45Q tax credits, the breakeven cost of adding CCS to Rio Grande LNG is expected to be $13 to $24 per metric tonne of CO2 or $0.05 to $0.09 per MMBtu on an LNG basis.
Matt Schatzman, NextDecade’s chairman and CEO; said: “Efforts to reduce global greenhouse gas emissions are at the very foundation of our company. The launch of NEXT Carbon Solutions comes at a pivotal time for our nation and the world, and we are eager to demonstrate the transformative and impactful contributions this business will make to the global energy industry and the quest toward a net-zero future.”
NextDecade expects to achieve inal investment decision (FID) on a minimum of two trains at Rio Grande LNG in 2021 and FID on the CCS project soon after FID at Rio Grande LNG.