Phil Rykhoek, President and CEO of Denbury Resources Inc., commented, "Denbury Onshore and its affiliated companies are pleased to see Lake Charles Clean Energy reach another key milestone in the development of this first-of-its-kind domestic project. The CO2 from the plant would supplement our other Gulf Coast CO2 sources and be used to drive additional growth in our Gulf Coast EOR operations. The captured CO2 would be transported through the 320-mile Green Pipeline, which was built to move CO2 to Gulf Coast oil fields ideally suited for CO2 EOR from natural sources near Jackson, Mississippi and projects like this one. From an environmental standpoint, EOR using man-made CO2 results in a net reduction in carbon emissions as the amount of CO2 captured and stored exceeds the amount of CO2 contained in the oil produced. Also, CO2 EOR allows us to recover oil that would otherwise be stranded in existing domestic oil fields, reducing our country's dependence on foreign oil imports. As a result, when coupled with our EOR operations, this project is a positive for the environment and for domestic energy supply, a true win-win."
In addition, the project has been awarded a $128 million federal investment tax credit under IRS Section 48B, which was a further indication of the support of the federal government for this clean fuels project.
For more information about the Lake Charles Clean Energy project, please visit: www.LakeCharlesCleanEnergy.com
About LeucadiaLeucadia Energy is an indirect wholly owned subsidiary of Leucadia National Corporation (NYSE: LUK), which is a diversified holding company engaged through its consolidated subsidiaries in a variety of businesses, including beef processing, manufacturing, gaming entertainment, real estate activities, medical product development and winery operations. Leucadia Energy is investigating the development of other domestic projects that would utilize commercially proven gasification technology. For more information about Leucadia National Corporation, please visit www.leucadia.com. About BP