Air Pollution Control Equipment Services, Coal

DOE issues final approval for Lake Charles CCS project funding

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The U.S. Department of Energy (DOE) on Dec. 30 released its record of decision under which it would provide cost-shared funding to Leucadia Energy LLC for its Lake Charles Carbon Capture and Sequestration (CCS) project in Louisiana.

This funding for the Lake Charles CCS project is under DOE’s Industrial Carbon Capture Sequestration (ICCS) Program. DOE in November 2013 issued a final environmental impact statement (EIS) that evaluates the potential environmental impacts associated with DOE’s proposed action to provide this funding.

DOE would provide $261.4m in financial assistance through a cooperative agreement with Leucadia to capture CO2 from the Gasification Plant and transport the CO2 via pipelines to the West Hastings oil field, for use in existing, commercial enhanced oil recovery (EOR). The West Hastings research monitoring, verification, and accounting (MVA) program will provide an accurate accounting of approximately 1 million tons of stored CO2.

DOE has already provided $13.9m to Leucadia for preliminary design and related activities. The estimated total cost of the Lake Charles CCS project is $435.6m.

This would be a Rectisol-based facility to capture at least 75% of the CO2 from the treated stream which would otherwise be released to the atmosphere from the Gasification Plant, which would use petroleum coke as the feedstock. The

CCS project includes:

  • CO2 Capture and Compression – Two Lurgi Rectisol Acid Gas Removal (AGR) units and two compressors would pressurize the CO2 to 2,250 pounds per square inch gauge (psig) for transport and geologic sequestration. The project would be designed to capture approximately 89% of the CO2 produced from the Gasification Plant. Over the 30-year expected life, approximately 4.6 million tons of CO2 per year would be captured, on average.
  • CO2 Pipeline A new pipeline, approximately 16 inches in diameter, would carry the captured CO2 approximately 11.9 miles and connect to the existing Green Pipeline, which extends across Louisiana into Texas.

Site preparation activities for the Gasification Plant, including clearing and grading, began in January 2010. Site preparation work to add approximately 12 feet of fill to raise the site elevations above the local 100-year and 500-year base flood elevations also began in November 2010. Construction of the Gasification Plant is expected to begin in the first quarter of 2014 and take approximately 36 months to complete, DOE noted.

The plant would use four General Electric quench gasifiers to convert petroleum coke into syngas. The syngas would be further processed to produce methanol, hydrogen gas, and sulfuric acid, as well as CO2.

Leucadia would purchase approximately 2.6 million tons of petcoke feedstock per year. All of the petcoke feedstock purchased by Leucadia would originate from the Gulf Coast region, which produces about 58% of the U.S. petcoke supply. Petcoke is a solid byproduct of oil refining that handles something like coal and is often co-fired in power plants with coal.

This CO2 project, while not directly involving coal, is considered a key test for technologies that could be used to capture CO2 from coal-fired power plants.

This article was republished with permission from Generation Hub.