Zero Emission Energy Plants (ZEEP) has entered into a definitive agreement with Eastman Chemical Company Investments to purchase all of the membership interests of TX Energy (TXE).
The facility will convert petroleum coke, an oil refining waste product, into hydrogen (H2) and pipeline quality carbon dioxide (CO2).
The transaction is expected to close during the second quarter of 2011.
ZEEP CEO Ron Oligney said that this site is uniquely suited for a gasification facility that converts waste petroleum coke into clean energy products, and the primary offtake will be hydrogen, an important clean energy feedstock for transportation fuels, fertilizers and chemicals.
"Carbon dioxide produced from the facility will be captured and used to boost oil production in fields near Beaumont and through an existing CO2 pipeline network," Oligney said.
ZEEP is focused on the development of state-of-the-art gasification facilities that convert coal, petroleum coke and biomass into high value energy products such as syngas, hydrogen, CO, CO2, methanol, gasoline and power.