HOUSTON & PLANO, Texas--(BUSINESS WIRE)--Jun 19, 2018--Occidental Petroleum Corporation (NYSE:OXY) and White Energy announced today that they have agreed to evaluate the economic feasibility of a carbon capture, utilization and storage project. The project would capture carbon dioxide (CO 2 ) at White Energy’s ethanol facilities in Hereford and Plainview, Texas, and transport it to the Permian Basin, where Occidental would use it in its enhanced oil recovery (EOR) operations. Occidental injects CO 2 into oil reservoirs, causing trapped oil to flow more easily and efficiently.
“The collaboration between Occidental and White Energy is a direct result of the passage of the FUTURE Act,” said Occidental Petroleum President and CEO Vicki Hollub. “Carbon capture technologies have the potential to play a critical role in reducing global emissions, and this project is an important first step in cross-industry collaboration to make these efforts economic, practicable and scalable.”
“White Energy is committed to the development of clean, renewable fuels. This project would enable us to capture the CO 2 produced at our plants and redeploy it in an environmentally responsible way,” said White Energy President and CEO Greg Thompson. “We’re excited about partnering with a diversified energy company like Occidental Petroleum. This project has the potential to provide strong environmental and economic benefits for everyone involved.”
The engineering study, expected to last six months, will examine the costs of building a carbon capture facility. If Occidental and White Energy determine the project is economically feasible, operations could begin as soon as 2021. The carbon capture project would be designed to be eligible for 45Q tax credits and California’s Low Carbon Fuel Standard Carbon Capture and Storage protocol, both currently in development, demonstrating that these important incentives result in near-term investment, reduced CO 2 emissions and jobs.