Under the new 15 year agreement, Whiting will purchase 80 million cubic feet of compressed CO2 per day from the project and has an option to extend the purchase thereafter.
The purchase accounts for 60% of total volume of captured CO2, during the first five years of plant’s operation.
The project can capture 90% of the carbon dioxide and nitrogen oxides, 99% of the sulfur and more than 95% of the mercury.
Construction at the project is scheduled to begin this year and will be complete in 2014 or 2015, when it will commence delivery of CO2 to Whiting.
The project will use coal as a chemical feedstock to produce low-carbon, high-hydrogen synthesis gas for power production and the manufacture of urea fertilizer.
The project received a $450m grant from the U.S. department of energy’s clean coal power initiative last year, reports carboncapturejournal.com.
Summit and Blue Strategies partnered in October 2009 to market the plant’s 2.5 million tons per year of CO2 to oil producers in the West Texas Permian Basin.
Whiting will be the first in the Permian to purchase CO2 from a power project that will be produced through the coal-gasification process, the company said.
Whiting has earlier used naturally occurring geological CO2 for injection in its enhanced oil recovery projects in Oklahoma and Texas in the US.
