Wabash Valley Resources receives OGCI funding for CCS project in Indiana
OGCI Climate Investments – the US$1 billion investment fund of the Oil and Gas Climate Initiative (OGCI) has announced an investment in what is likely to be the largest carbon capture and sequestration (CCS) project in the United States (US) to date. The project aims to capture and sequester 1.5-1.75 million tonnes of carbon dioxide (CO2) annually from Wabash Valley Resources LLC (WVR) co-located ammonia plant and will create the world’s first ammonia produced with a near-zero carbon footprint.
According to OGCI, fertilizer plants are a major source of greenhouse gas (GHG) emissions, representing approximately 2 percent of CO2 emissions globally. WVR’s carbon capture and sequestration project will facilitate the production of fertilizer, from the co-located WVR plant located outside of West Terre Haute, Indiana (IN), with a very low carbon footprint.
CCUS will be a crucial part of the low carbon economy. Our investment in Wabash Valley Resources is a tangible demonstration of our commitment to CCUS as a tool to decarbonize the industrial sector. We look forward to working with Wabash Valley Resources team as they develop this project and demonstrate that CCUS is available today as a tool to combat climate change, remarked Pratima Rangarajan, CEO of OGCI Climate Investments.
WVR, an affiliate of Phibro LLC, acquired the world-scale coal gasification plant in 2016, with plans to convert it to an ammonia production plant with CCS. According to WVS, the project is expected to be the largest green hydrogen combined with carbon sequestration project in the US to date and will create the world’s first hydrogen carrier ammonia produced with near-zero carbon footprint thanks to CCS.
Ammonia suitable hydrogen carrier
Ammonia (NH3) stands to become a valuable hydrogen energy carrier, that can elevate the feasibility of a hydrogen economy as it is in a liquid state at ambient conditions with high volumetric and gravimetric energy density and low propensity to create lethal hazards when transported, stored, and used.
The project will capture and sequester close to 100 percent of the plant’s CO2 approximately 7 000 ft below the surface into the saline sandstone aquifer known as the Mount Simon Sandstone and will have the capacity to be expanded to 1.75 million tonnes of CO2 per annum.
This innovative carbon capture and sequestration project will facilitate the production of green ammonia. Farmers and industrial end-users alike will, for the first time, be presented with an opportunity to purchase ammonia produced in an environmentally conscious and sustainable manner and at an affordable price, commented Simon Greenshields, President, and CEO of Phibro.
In May 2018, the project was selected to receive funding from the US Department of Energy (DOE) as part of the Carbon Storage Program. The Program’s objective is the advancement, development, and validation of technologies that enable safe cost-effective, and permanent geologic storage of CO2.
We would like to thank the Indiana Governor Eric Holcomb and the Indiana General Assembly for their support. Indiana’s business-friendly environment and innovative culture were instrumental in facilitating the development of an ammonia and carbon sequestration project. The project shall utilize traditional clean energy financing vehicles, such as third party tax equity, said Nalin Gupta, Board Member of WVR.