ExxonMobil has announced plans to build a commercial demonstration plant to remove CO2 from natural gas near LaBarge, Wyoming, where it will use its Controlled Freeze Zone technology, known as CFZ.

The company said that it is committing more than $100 million to complete development and testing of the improved natural gas treating technology.

Controlled Freeze Zone (CFZ) is a single-step cryogenic separation process that freezes out and then melts the CO2 and removes other components including hydrogen sulfide, which is found in so-called sour gas. If successful, the process will reduce the cost of CO2 removal from produced natural gas.

Using the CFZ process, the CO2 and other components are discharged as a high-pressure liquid stream for injection into underground storage or for use in reservoir management to enhance oil recovery.

Besides reducing the cost of separation, transportation and reinjection, the CFZ process can eliminate the use of solvents, sulfur plants and CO2 venting in processing of the natural gas.

The new demonstration plant will advance the CFZ technology to commercial application, and be located at ExxonMobil’s Shute Creek Treating facility. Construction will commence this summer for operational startup in late 2009.

Mark Albers, senior vice president of Exxon Mobil, said: This technology will assist in the development of additional gas resources to meet the world’s growing demand for energy and facilitate the application of carbon capture and storage, to reduce greenhouse gas emissions.