Coal and petcoke gasification provides exceptional opportunity to capture CO2 and state enviromental quality departments issued air permits for two projects in March. Two solids gasification projects received their air permits in March. Coal and petcoke gasification provides the highest CO2 capture rate. This is a factor in each states’s enviromental quality departments decision to issue air permits for the two projects.

DKRW Energy received the air permit for the Medicine Bow Fuel and Power project in Medicine Bow, Wyoming. The Wyoming Department of Environmental Quality (DEQ) approved the air permit March 6, 2009. The Medicine Bow Fuel and Energy project is a coal-to-liquids project and will gasify Wyoming coal and produce gasoline as the primary product. The CO2 will be captured and pumped under pressure into pipelines to be used for CO2 enhanced oil recovery in the Powder River Basin oilfields.

Hunton Energy received the air permit for the Lockwood Project in Brazosport, Texas. The Texas Commission on Environmental Quality (TCEQ) issued the air permit on March 4, 2009. The Lockwood project will gasify petcoke and produce synthetic natural gas (SNG), a pipeline quality natural gas. The CO2 will be captured and pumped under pressure into pipelines to be used CO2 enhanced oil recovery in the Texas oilfields.

Hunton Energy filed an application for an air permit with the Texas Commission on Environmental Quality (TCEQ). Hunton Energy has announced plans to construct a petcoke gasification plant in Freeport, Texas adjacent to Dow Oyster Creek Plant.

The Hunton Energy Corporation announced that it will build a petcoke gasification plant in Freeport, Texas. The plant, Lockwood Project, will be built on 250 acres adjacent to the Dow Oyster Creek Plant in Freeport, Texas.

The feedstock will be petcoke. Hunton Energy has entered into a supply agreement with Valero Energy Corporation to provide the petcoke. Valero has been working to increase the value of it’s petcoke and this agreement realizes that objective. Petcoke is a waste product produced by refineries delayed coker units and has traditionally not been considered a source of revenue.

The plant will convert the syngas to Substitute Natural Gas (SNG) using a methanation process. The SNG produced from the syngas is chemically equal to natural gas and thus is called SNG. The project will capture the CO2 gas, compress it and inject into pipelines for use in Enhanced Oil Recovery (EOR). EOR is the technique of pumping CO2 deep into mature oil formations to increase the production of crude oil. The CO2 remains in the crude oil geological formations.

Dow has entered into an off-take agreement with Hunton Energy to purchase the SNG and some of the steam. The remaining steam will be used to generate electricity.

This project is a win-win for Texas. It will create 1,200 construction jobs and 150 new permanent jobs; it will produce substitute natural gas and electricity with petcoke; it will capture the CO2; and the CO2 will be used to increase oil production in mature oil fields.