US and Japan power companies plan CCS system to boost oil production

The American NRG Energy and Japan’s JX Nippon power utilities on Tuesday (July, 15) announced they have teamed up to build a first-of-its-kind system to capture CO2 emissions from an existing coal-fired power plant located in Fort Bend County, Texas.

According to NRG’s release, the Petra Nova Carbon Capture Project is expected to capture around 1.6 million tons of CO2 annually, to be compressed and piped through an 82-mile long pipeline to an aging oilfield, boosting oil production at the field from around 500 barrels per day to approximately 15,000 barrels per day.

The planned technology is named Enhanced Oil Recovery (EOR).

The project will be operational by the end of 2016, NRG said, and it will cost approximately $1 billion, of which $167 million in grants from the US Department of Energy’s Clean Coal Power Initiative and $250 million in loans provided by the Japan Bank for International Cooperation and Mizuho Bank.