Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Tallgrass Energy, ADM plan CO2 transport and sequestration deal

Published 05/18/2022, 09:45 AM
Updated 05/18/2022, 09:54 AM
© Reuters. FILE PHOTO: The Archer Daniels Midland Co. (ADM) logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid

By Liz Hampton

DENVER (Reuters) - Pipeline firm Tallgrass Energy on Wednesday said it will convert a natural gas pipeline into carbon dioxide service, and ship CO2 from an Archer-Daniels-Midland Co corn-processing plant in Nebraska to a permanent underground storage hub in Wyoming.

Tallgrass will convert its Trailblazer natural gas pipeline, which runs through Nebraska, Colorado and Wyoming, into a 400-mile carbon dioxide system capable of transporting over 10 million tons of CO2 per year.

The pipeline will connect to Tallgrass' recently announced CO2 sequestration hub in eastern Wyoming. That facility is anticipated to start service in 2024.

Many companies are proposing carbon capture and storage hubs as a way to sequester greenhouse gas emissions from industrial facilities and refineries in a bid to slow global warming. But for most states, the permitting of underground carbon injection wells requires federal approval which can take years.

Wyoming and North Dakota both hold enforcement authority, or primacy, over the permitting of carbon injection and storage wells, which has enabled them to speed up the approval process.

This week oil major BP (NYSE:BP) Plc and industrial gas supplier Linde (NYSE:LIN) Plc announced plans for a carbon capture project near Houston. Exxon Mobil (NYSE:XOM) and a joint venture between Talos Energy (NYSE:TALO) and Chevron (NYSE:CVX) have also announced plans for carbon capture projects off the U.S. Gulf Coast.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.