Starwood Energy and OGCI to co-invest in large-scale CCS project
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Combustion Industry News Editor
Starwood Energy Group Global (a US private equity investment firm) has reached an agreement with OGCI Climate Investments (the venture between a range of oil and gas companies) to co-invest in a large-scale carbon capture and storage facility, in one of the first US CCS projects to be announced that is to use Section 45Q tax credits. Construction is to commence in 2021, and the facility is to be integrated into an as-yet unnamed gas-fired power plant, with the captured carbon dioxide being used for enhanced oil recovery (in a joint venture between Starwood and Elysian Ventures). Although official guidance regarding the Section 45Q tax credits has yet to be completed, the parties appear convinced that the guidance will be conducive to the financial soundness of the project. The fact that the announcement has come even before the completion of the guidance suggests that there will be significant take-up of CCS projects under the scheme, which will help to spur the industry worldwide.