Groundbreaking British Columbian project expected to produce up to 100 million litres (26.4 million gallons) of ultra-low carbon fuel annually
Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental (Oxy), announced it awarded a services contract to Worley for a facility being designed to produce renewable fuels in British Columbia by capturing carbon dioxide from the atmosphere. Using Carbon Engineering’s Direct Air Capture and AIR TO FUELS™ technologies, the facility is expected to produce up to 100 million litres (26.4 million gallons) of ultra-low carbon fuel annually for the local Canadian market.
The DAC-to-fuels facility, to be developed by OLCV and Huron Clean Energy, is expected to be the first commercial-scale project of its kind. When built, the facility’s low-carbon fuels are expected to provide an important new option for hard-to-decarbonize industries, such as marine, air, rail and truck transportation. Transporters could choose these fuels as a method of dramatically reducing their fleets’ carbon dioxide footprint without the need for vehicle modification.
Worley will provide early front-end engineering and design (pre-FEED) services for the facility and will act as project integrator for the technology. Construction on the DAC-to-fuels project is scheduled to begin in 2023, with the facility anticipated to be operational by 2026. Upon completion of the pre-FEED, the project is expected to move into the FEED and then engineering, procurement, fabrication and construction phase.
“We are proud to partner with Carbon Engineering and Huron on the AIR TO FUELS™ project and pleased that Worley will join the team to conduct the pre-FEED,” said Richard Jackson, President, Operations, U.S. Onshore Resources and Carbon Management, of Oxy. “We selected Worley based on our experience working with them and believe their method of driving innovation within their company will advance the development of the AIR TO FUELS™ facility.”
Worley is also developing the FEED for a direct air capture facility (DAC-1) being developed in the U.S. Permian Basin by OLCV’s 1PointFive subsidiary, which is expected to capture 1 million metric tons of atmospheric carbon dioxide for permanent storage when completed.
“We are delighted to have been awarded this contract by OLCV and are looking forward to building on the relationship we started on the DAC-1 project earlier this year. The significance of the direct air capture technology being extended to renewables fully aligns with Worley’s purpose of delivering a more sustainable world,” said Chris Ashton, Chief Executive Officer of Worley.
About Oxy Low Carbon Ventures
Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of Occidental (Oxy), an international energy company with assets in the United States, Middle East, Africa and Latin America. OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance Oxy’s business while reducing emissions. OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally.
About Occidental
Occidental (NYSE:OXY) is an international energy company with assets in the United States, Middle East, Africa and Latin America. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and DJ basins and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world.
About Worley
Worley is a global company headquartered in Australia and our purpose is delivering a more sustainable world. Worley is a leading global provider of professional project and asset services in the energy, chemicals and resources sectors. As a knowledge-based service provider, we use our knowledge and capabilities to support our customers to reduce their emissions and move towards a low carbon future.
Worley Limited is listed on the Australian Securities Exchange (ASX: WOR).
About CE
Founded in 2009, Carbon Engineering (CE) is a Canadian-based clean energy company. CE is focused on the global deployment of large-scale Direct Air Capture (DAC) technology that captures carbon dioxide (CO₂) out of the atmosphere so it can be permanently stored deep underground or used to produce clean, affordable transportation fuels. From a pilot plant in British Columbia, CE has been capturing CO₂ from the atmosphere since 2015. Today, with its partners, CE is working to deploy large-scale, commercial facilities in multiple markets around the globe.
About Huron
Founded in 2018, Huron Clean Energy is a Canadian-based energy company that has partnered with Carbon Engineering Ltd. to own and operate commercial-scale DAC and AIR TO FUELS™ plants. Carbon Engineering has licensed their DAC and AIR TO FUELS™ technology to Huron Clean Energy to build, own, and operate commercial plants that will enable the production of renewable synthetic liquid fuels made from just three major inputs – air, water, and renewable energy.