Low oil prices force NRG Energy to put hold on Petra Nova carbon capture project

August 06, 2020
Owning the Energy Transition More...
Very important

The outlook for industrial CO2 capture for enhanced oil recovery (EOR) applications does not look positive following the indefinite shutdown of Petra Nova, the largest commercial-scale post-combustion CO2 capture facility to date. Current low oil prices attributed to COVID-19 have made the flagship project uneconomical, though NRG Energy will look to resume operations once economics improve. However, despite potential 45Q tax credits for CO2 utilization, Lux's own analysis found that the project would not be economical for COEOR unless oil prices hit the $70/bbl mark. Without stronger cost incentives, operators will continue to look for cheap, naturally sourced CO2 for EOR until oil prices recover or the cost of CO2 capture comes down.

For the original news article, click here .

Further Reading

Industry Event Recap: Decarbonization of Oil and Gas at the Go Net-Zero Carbon Energy Virtual Summit

Analyst Insight | June 25, 2020

Last month, Lux Research presented at the Go Net‑Zero Carbon Energy Virtual Summit hosted by Globuc. Given the impact from COVID‑19 and the oil price plunge in May, the summit was buzzing, as the oil and gas industry faces not only the challenges of decarbonization but also a sudden shock in ... Not part of subscription

Shell looks to sell $3 billion LNG liquefaction plant in Australia as part of its ongoing capital divestment program

News Commentary | June 10, 2020

As part of its $30 billion divestment program, Shell is looking to sell its 8.5 million TPY LNG liquefaction facility in Queensland, Australia. The sale is expected to fetch approximately $2 billion to $3 billion. The sale of LNG assets is a slight departure for Shell and could have been motivated ... Not part of subscription

Mitsubishi Power will supply on-site hydrogen projection and turbines to three utility-scale gas plants in the U.S.

News Commentary | September 04, 2020

Mitsubishi Power (formerly MHPS) will provide a package including electrolyzers, balance‑of‑plant components, and gas turbines for two new‑build gas plants and one retrofitted plant. With a combined capacity of 2.1 GW, the plants will run on mixes of H2 (initially up to 30%) made using surplus ... Not part of subscription