--Part of NRG Energy’s overall fossil fuel
decarbonization strategy--
NRG Energy, Inc. (NYSE:NRG) and JX Nippon Oil & Gas
Exploration Corporation (JX Nippon) have completed construction,
on-budget and on-schedule, of Petra Nova, the world’s largest
post-combustion carbon capture system.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170109006496/en/
Sixteen-foot diameter ductwork takes flue
gas from the coal plant to the carbon caption facility where the
CO2 is removed from the flue gas by the amine solution in the tall
absorption tower and then separated from the amine as 99.9% pure
CO2 in the smaller regenerator tower to the right before being
compressed and delivered to the oil field.(Photo: Business
Wire)
“Completion of the Petra Nova project is an important milestone
in our quest to help ensure reliable, affordable and increasingly
cleaner energy from fossil fuels,” said Mauricio Gutierrez,
President and CEO of NRG Energy. “This project represents another
major step in NRG’s effort to reduce our carbon emissions and
create a more sustainable energy future, and we are proud that this
accomplishment was achieved on-budget and on-schedule in a
competitive energy environment. I want to thank our partners at JX
Nippon, Hilcorp and the U.S. Department of Energy as well as the
State of Texas, our contractors and lenders for their commitment to
the successful completion of this landmark project.”
Petra Nova first captured carbon dioxide (CO2) on September 19,
2016 and has delivered more than 100,000 tons of captured CO2 to
the West Ranch field through an 80-mile pipeline. Final performance
acceptance testing on the facility was completed on December 29,
2016 and the facility turned over for operations. During
performance testing, the system met all performance criteria
including capturing more than 90% of CO2 from a 240 MW equivalent
slipstream of flue gas off an existing coal-fueled electrical
generating unit at the WA Parish power plant in Fort Bend County,
southwest of Houston. At this level of operation, Petra Nova can
capture more than 5,000 tons of CO2 per day which is the equivalent
of taking more than 350,000 cars off the road.
“JX Nippon is very pleased to see the construction of the Carbon
Capture System completed and operations commencing as planned,
thanks to the great effort made by the Petra Nova team,” said
Shunsaku Miyake, President and CEO of JX Nippon Oil & Gas
Exploration Corporation. “We believe this project will contribute
to significantly increasing incremental crude oil production from
legacy oil fields and also will be a major step forward in helping
to decrease CO2 emissions globally.”
Construction on the Petra Nova project began in 2014 with a goal
to be operational by the end of 2016. With construction completed,
on-budget and on-schedule, the Petra Nova carbon capture facility
has achieved this goal.
“NRG and JX Nippon’s Petra Nova is the type of innovative,
technologically advanced project that proves time and again that
Texas is the world leader in energy innovation,” said Greg Abbott,
Governor of the State of Texas.
Hilcorp Energy Company (Hilcorp), the operator of West Ranch
oilfield, will use the captured CO2 to boost production at West
Ranch oilfield, jointly owned by NRG, JX Nippon and Hilcorp. Both
Hilcorp and the University Of Texas Bureau Of Economic Geology will
monitor the movement of CO2 deep in the oil reservoir. Over the
next few years, oil production at the field is currently estimated
to increase from approximately 300 barrels per day before beginning
Enhanced Oil Recovery (EOR) operations to production of up to
15,000 barrels per day using captured CO2.
“To date we have drilled nearly 100 new wells in the West Ranch
field and have implemented a robust CO2 and ground water monitoring
program,” said Jeffery D. Hildebrand, Chairman and CEO of Hilcorp
Energy Company. “We are excited about this project, and expect to
see a meaningful increase in oil production at West Ranch in the
near future.”
Petra Nova is 50-50 joint venture by NRG and JX Nippon.
Additionally, the United States Department of Energy (DOE) is
providing up to $190 million in grants as part of the Clean Coal
Power Initiative Program (CCPI), a cost-shared collaboration
between the federal government and private industry. A portion of
the project was financed with project loans from the Japan Bank for
International Cooperation (JBIC) and Mizuho Bank, backed by Nippon
Export and Investment Insurance (NEXI).
Petra Nova uses the KM-CDR Process®, jointly developed by
Mitsubishi Heavy Industries, Ltd. (MHI) and the Kansai Electric
Power Co., Inc., and employs a proprietary KS-1 high-performance
solvent for the CO2 absorption and desorption. The carbon capture
facility was constructed under a fixed-price contract by a
consortium of Mitsubishi Heavy Industries Americas, Inc. (MHIA) and
TIC (The Industrial Company). At peak construction, over 500 people
were working on the project.
By being built on an existing coal unit, Petra Nova shows an
economic path to make existing and new fossil fuel plants
significantly more environmentally viable as we transition to more
sustainable energy future.
In addition to Petra Nova, NRG is helping to build a
lower-carbon energy future in multiple ways including a growing
renewable energy portfolio, the development of fast start, flexible
natural gas turbines, which are low carbon in their own right and
help to integrate renewables into the grid, and coal to gas
conversions and additions. NRG operates more than 7,000 megawatts
of fast start natural gas and has modified more than 2,780
megawatts of older coal-fueled steam generation to use cleaner
burning natural gas, reducing their carbon intensity roughly by
half. These efforts are the foundation of NRG’s commitment to
achieve NRG Energy’s carbon reduction goals of 50% by 2030 and 90%
by 2050.
NRG, JX Nippon and Hilcorp expect to host a ribbon cutting at
the site in the first half of 2017.
About NRG
NRG is the leading integrated power company in the U.S., built
on the strength of the nation’s largest and most diverse
competitive electric generation portfolio and leading retail
electricity platform. A Fortune 200 company, NRG creates value
through best in class operations, reliable and efficient electric
generation, and a retail platform serving residential and
commercial businesses. Working with electricity customers, large
and small, we continually innovate, embrace and implement
sustainable solutions for producing and managing energy. We aim to
be pioneers in developing smarter energy choices and delivering
exceptional service as our retail electricity providers serve
almost 3 million residential and commercial customers throughout
the country. More information is available at www.nrg.com. Connect
with NRG Energy on Facebook and follow us on Twitter
@nrgenergy.
About JX Nippon Oil & Gas Exploration Corporation
JX Nippon Oil & Gas Exploration Corporation is a core
business company that engages in oil and natural gas exploration
and production (E&P) business in the JX Group. The JX Group is
the leading “integrated energy, resources and materials business
group” in Japan and has net sales of approximately $90 billion. We
are currently expanding crude oil and natural gas E&P business
in 13 countries around the world. In the U.S., we hold assets in
the Gulf of Mexico, which range from the continental shelf to deep
water area, in addition, in Canada, participate in the Syncrude
Project that produces synthetic crude oil from oil sand, and
operate them at Houston office. More information is available at
www.nex.jx-group.co.jp/english.
Safe Harbor
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking
statements are subject to certain risks, uncertainties and
assumptions and include NRG’s expectations regarding the
post-combustion carbon capture unit at NRG’s WA Parish plant and
forward-looking statements typically can be identified by the use
of words such as “will,” “expect,” “believe,” and similar terms.
Although NRG believes that its expectations are reasonable, it can
give no assurance that these expectations will prove to have been
correct, and actual results may vary materially. Factors that could
cause actual results to differ materially from those contemplated
above include, among others, general economic conditions, hazards
customary in the power industry, competition in wholesale power
markets, the volatility of energy and fuel prices, failure of
customers to perform under contracts, changes in the wholesale
power markets, changes in government regulation of markets and of
environmental emissions, and our ability to achieve the expected
benefits and timing of the carbon capture-EOR projects. NRG
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The foregoing review of factors that could cause
NRG’s actual results to differ materially from those contemplated
in the forward-looking statements included in this news release
should be considered in connection with information regarding risks
and uncertainties that may affect NRG’s future results included in
NRG’s filings with the Securities and Exchange Commission at
www.sec.gov.
Petra Nova Construction Materials
- 729,000 linear feet of cable –
equivalent to 138 miles or the distance from the plant, southwest
of Houston, to Austin, Texas.
- 11,000 cubic yards of concrete –
equivalent to filling 126 backyard swimming pools
- 65,000 linear feet of pipe – enough
pipe to stretch up and down the One World Trade Center building in
New York 18 times
- The total weight of the absorber tower
alone is almost 1,700 tons. The regenerator next to it adds another
500 tons.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170109006496/en/
NRG Energy, Inc.Media:David Knox,
713-824-6445orLindsey Puchyr, 609-524-4527orInvestors:Kevin
Cole, CFA, 609-524-4526
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