On Bauer Business Focus—A conversation on the world’s largest post-combustion carbon capture project with Houston Public Media News 88.7 Business Reporter Andrew Schneider.
The Department of Energy has been focused on looking at existing coal plants and seeing how they can make them better and have funded a number of carbon capture projects over the last few years. Coal plants are the nation’s primary source for energy, but are currently facing problems due to proposed federal rules requiring reductions in carbon emissions from electric power plants.
Arun Banskota, president and CEO of NRG Energy’s Petra Nova, recently stopped by Bauer Business Focus to discuss how the plant will provide extremely clean emissions from coal plants by using what had been pollution to produce oil.
“Carbon capture is a technology that has been widely used for around 100 years,” Banskota said. “The biggest objection about reigning in carbon dioxide emissions is that it is an additional cost, which will increase the cost of electricity. What we have done is use carbon dioxide for enhancing oil recovery, thereby producing revenue from oil to fund our carbon capture facility.”
Banskota says that the enhanced oil recovery process is a tried and tested method used since 1972. He projects that the capital expenditure from the capture facility, totaling $1 billion, will be more than recouped from oil sales at the West Ranch oil field, east of Victoria, as it continues to produce a range of 500 barrels of oil daily.
“We are very confident that this facility will produce the kind of oil that we projected in our financial models,” Banskota said. “With the revenue from oil sales, we will be able to fund our carbon-capture efforts, which can take out 90 percent of what’s released through emissions. We are talking about 1.6 million tons of carbon permanently sequestered.”
Click here to hear the full interview.