United States – Navigator CO2 Ventures has signed an agreement with OCI N.V.’s wholly-owned Iowa Fertilizer Company facility (OCI) to provide CO2 transportation and storage services on the Heartland Greenway carbon capture and storage (CCS) system.
The project is supported by BlackRock’s Global Energy & Power Infrastructure Fund III, which invests in long-term infrastructure assets, and is commercially anchored by Valero.
Both companies signed an agreement outlining the key terms for Navigator to provide CO2 transportation and storage services under a long-term agreement for up to 1,130,000 metric tons of CO2 per year, which is equivalent to the carbon emissions of approximately 245,000 vehicles driven annually. The project will be divided into two phases, with the first focusing on process gas, which accounts for approximately 500,000 metric tons of CO2 per year, and the second on the balance, subject to regulatory enhancements to the 45Q program that make installation of the required post-combustion capture equipment economically feasible.
When the new infrastructure is completed, the project will be able to capture and store a significant portion of the CO2 emissions from Iowa’s largest fertilizer plant. The first phase is scheduled to begin operations at the end of 2024.
Through Heartland Greenway, Navigator will collaborate with other industrial processing plants in the Midwest to adopt a more sustainable approach in the execution of their services and aid in the reduction of their carbon footprints.
Once fully developed, the Heartland Greenway will be able to capture and sequester 15 million metric tons of CO2 per year, which, according to EPA estimates, is equivalent to eliminating the Des Moines metro area’s annual carbon footprint three times over.
The agreement is contingent on the completion of definitive documents.