NextDecade Launches NEXT Carbon Solutions
NextDecade Corp. has formed a subsidiary to develop carbon capture projects and focus on reducing emissions.
The company announced March 18 that creation of NEXT Carbon Solutions LLC, which will focus on developing one of the largest carbon capture and storage (CCS) projects in North America at NextDecade’s Rio Grande LNG project. The new company will also advance proprietary processes to lower the cost of using CCS technology, while helping other energy companies to reduce greenhouse gas (GHG) emissions associated with the production, transportation and use of natural gas, and generating high-quality, verifiable carbon offsets to support companies in their efforts to achieve net-zero emissions.
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NEXT Carbon Solutions’ CCS project is expected to reduce permitted carbon dioxide emissions at Rio Grande LNG by more than 90 percent without major design changes to the project. As a result, Rio Grande LNG is expected to be the greenest LNG project in the world.
“Efforts to reduce global greenhouse gas emissions are at the very foundation of our company,” said Matt Schatzman, NextDecade’s chairman and CEO. “The launch of NEXT Carbon Solutions comes at a pivotal time for our nation and the world, and we are eager to demonstrate the transformative and impactful contributions this business will make to the global energy industry and the quest toward a net-zero future.”
CCS Project
NEXT Carbon Solutions’ CCS project at Rio Grande LNG is expected to enable the capture and permanent geologic storage of more than five million tonnes of carbon dioxide per year. NEXT Carbon Solutions believes that developing the CCS project at the same time as the Rio Grande LNG project will result in 60 to 80 percent less capital costs than retrofitting an operating LNG facility.
All-in costs of the CCS project, including capital and operating expenses, interest, transportation, and permanent storage, are expected to be $63 to $74 per metric tonne of carbon dioxide before any benefit from Section 45Q tax credits. Including the full benefit of Section 45Q tax credits, the breakeven cost of adding CCS to Rio Grande LNG is expected to be $13 to $24 per metric tonne of carbon dioxide or $0.05 to $0.09 per MMBtu on an LNG basis. Coupled with its low costs, NextDecade believes that LNG from Rio Grande LNG will be among the greenest and most attractively priced in the world.
“I am immensely proud of the carbon emissions reduction work our NextDecade team has completed over the last several years, and of the team’s ability to innovate and continuously challenge industry paradigms,” said Ivan Van der Walt, NextDecade’s senior vice president of engineering and construction. “We believe our CCS project at Rio Grande LNG and the proprietary processes we are advancing could significantly enhance the environmental performance and positive impacts of low-GHG LNG.”
Greenest LNG Project in the World
NextDecade is working with sustainable Permian and Eagle Ford producers seeking to supply responsibly sourced natural gas (RSG) to Rio Grande LNG. Combining RSG with the anticipated carbon dioxide emissions reduction associated with its CCS project is expected to enable Rio Grande LNG to produce the lowest lifecycle GHG LNG on an FOB basis and to be the greenest LNG project in the world.
“We continue to believe that reliable, competitively priced LNG and responsible environmental stewardship are not mutually exclusive, and our customers do not have to choose between pocketbook and planet,” said Schatzman. “NextDecade will be a leader in the sustainable production of LNG to be exported from the U.S. Gulf Coast, providing clean energy security to global markets, especially those that have historically relied on coal and other carbon-intensive fuels to generate electricity and industrial process heat.”
Tags: Carbon Capture System (CCS), NEXT Carbon Solutions, NextDecade Corp., Rio Grande LNG
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