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.
Lake Charles Clean Energy Announces Contracts With BP, Air Products And Denbury; Advances First-in-the-Nation Project With State-of-the-Art Gasification For Clean Fuels
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.