Elysium Carbon Management obtains a funding commitment


A new entrant in the arena of carbon management received an important vote of confidence.

Elysian Carbon Management of San Antonio this week announced an initial commitment of $ 350 million from EnCap Flatrock Midstream to develop integrated carbon capture and storage solutions

“Elysium is focused on development projects for carbon management,” said Bret Logue, managing director, while in Midland attending the CO2 conference in downtown Midland.

“This funding will help us finance the operations and the development of the projects themselves,” he continued. The company will be able to work on design, engineering, contracting, licensing and even construction of projects.

The Elysium team is primarily focused on choosing the location of projects that will capture carbon dioxide emissions from existing emitters, their transport and storage at Elysium’s facilities.

“We focus on industrial emissions at large – refineries, ethanol plants, cement plants, power plants, all are good candidates to capture emissions,” he said, adding that the factories gas processing are also another good source of emissions, whether it is CO2 removed during natural gas processing or emissions from factories.

Carbon management is the holistic view of a company’s emissions profile and the development of strategies to prevent these emissions from entering the atmosphere, whether by updating equipment or adding new equipment. capturing broadcasts, he explained.

Many corporate initiatives in this direction predate the current administration, but the Biden administration is taking steps to scale up those efforts, Logue said. The updates to the 45Q tax credit in the Build Back Better plan adopted by the House and under consideration by the Senate could expand these opportunities and facilitate the achievement of the administration’s objectives. He said there are still opportunities available below the current values ​​of 45Q.

Some captured emissions could be used in products, and there are industry-wide opportunities to trade emission reductions – so we have the most effective solutions. Businesses can achieve their goals in partnership with other businesses. Not all carbon reduction costs are the same, and we need to optimize them in order to find the cheapest method. “

As Elysium develops its first projects, Logue said the company is definitely leaning towards the Permian Basin. The 40 year history of the injection and use of CO2 in the region for enhanced oil recovery is an appeal, as is the knowledge of the geology of the region for CO2 storage.

“We are also looking more widely across the country for storage opportunities,” said Logue.

The goal, with EnCap Flatrock Midstream’s funding commitment, is to reduce carbon emissions by at least 10 million metric tonnes per year, he said.

“There has been a lot of accelerated interest in this space over the past year,” said Logue. “We think it will grow further.”


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