Starwood Energy Group Global, Inc. recently announced that it has finalized agreements with OGCI Climate Investments to invest in the development of a large-scale carbon capture facility to be integrated with a natural gas power plant. Starwood and OGCI CI will co-invest in the initial development of the project, which will use commercially available CO2 capture technology and is expected to capture 90% of the CO2 emissions from an existing power facility. The captured CO2 will then be used in enhanced oil recovery and permanently sequestered in an existing oil field. The project will be jointly developed by Starwood and Elysian Ventures, LLC.
The project will seek to use Section 45Q tax credits for the deployment of carbon capture projects once final regulations are implemented, including potential upcoming legislative enhancements. The project will be non-recourse financed, with construction of the facility expected to commence in early 2021.
Press Release Courtesy of Starwood Energy Group Global.