OCI and Navigator strike CO2 transportation and storage deal in Iowa
LONDON (ICIS)–Iowa Fertilizer Company (IFCo) facility has teamed up with Navigator CO2 Ventures to provide CO2 transportation and storage services on the latter’s carbon capture and storage (CCS) system, the Heartland Greenway, IFCo’s Dutch parent OCI disclosed on Monday.
The agreement, which is subject to finalisation of definitive documents, will see Navigator provide CO2 transportation and storage services under a long-term agreement for up to 1.13m tonnes/year of CO2, equivalent to the carbon emissions of approximately 245,000 vehicles driven annually.
The project will have two phases, with the first focused on process gas representing around 500,000 tonnes/year of CO2, and the second for the balance, subject to regulatory enhancements of the 45Q (tax credit) program to make installation of the required post-combustion capture equipment economically feasible.
When the new infrastructure is installed, the project will. have the capability to capture and store materially all CO2 emissions from Iowa’s largest fertilizer plant.
Start of operations for the first phase is expected at the end of 2024.
Heartland Greenway is a Navigator CO2 Ventures proposed CCS system that will provide biofuel producers and other industrial customers in the Midwest states of Illinois, Iowa, Minnesota, Nebraska and South Dakota with a cost-effective way to reduce their carbon footprint.
Once fully expanded, the Heartland Greenway will be able to capture and sequester 15m tonnes/year of CO2.
In a news release, OCI noted the project is backed by BlackRock’s Global Energy & Power Infrastructure Fund III, which invests in essential, long-term infrastructure assets, and is commercially anchored by Valero.
Ahmed El-Hoshy, CEO of OCI, commented: “We are excited to partner with Navigator on this project which allows for an effective and quick solution to reduce our CO2 footprint and offer low carbon products to our customers across the value chain from our world-scale facility in Iowa.
“This agreement follows the announcement earlier this year that we have the ability to produce up to 365,000 tonnes/year of blue ammonia at OCI Beaumont in Texas, and blue and green ammonia projects in Abu Dhabi and Egypt, and marks another milestone towards achieving our sustainability goals and progressing towards a greener future.”
“We’re excited to embark on this project with OCI to provide a long-term and cost-effective solution for handling their CO2 emissions,” added Navigator CEO, Matt Vining.
“State-of-the-art nitrogen producers like OCI play a critical role in decarbonising the agricultural supply chain, as well as industrial feedstocks and fuels, and we look forward to advancing a greener future together.”