Valverde Power Solutions, Inc., MISC Berhad, Clean Energy Systems, Inc. and Aker Solutions today jointly announced the execution of an Agreement to specify and fund certain preliminary front-end engineering design (Pre-FEED) to assess and demonstrate two North American emission-free power projects utilizing Clean Energy Systems’ proven Oxy-Fuel burner technology (“Hestia Demo Project”).
The main objective of the Hestia Demo Project is to demonstrate the robustness of the Oxy-Fuel burner technology in an oil and gas field setting to generate emission-free power, reduce or eliminate oil field greenhouse gas (GHG) emissions, sequester CO2 and provide a solution for stranded natural gas reserves. In an ESG context, by utilizing the Oxy-Fuel burner, Hestia Demo Project expects to show the ability to meaningfully address both Scope I and Scope II GHG emissions. The project team intends to capitalize on the significant Carbon Capture, Utilization and Storage (CCUS) technical and engineering expertise among the project participants.
The Oxy-Fuel burner technology is licensed by Valverde and owned by Clean Energy Systems (“CES”), a global leader in the development and deployment of carbon-reducing energy systems. The scalable CES Oxy-Fuel solution is designed to provide 10 MW to 100 MW of emission-free electrical power to meet the customer’s specific project requirements.
Valverde management has been involved in CO2 operations, sequestration and transportation since the late 1990s and will serve as project integrator and manager for the project.
Commenting on the Hestia project, Valverde’s CEO Gareth Roberts, said “Providing emission-free electrical power from abundant natural gas reserves is a critical component in ensuring a successful energy transition. The next stage of the project will provide a Consortium structure that will allow for scale and rapid oil field deployment of Oxy-Fuel technology for each participant. We believe that Oxy-Fuel is the most effective technology of its kind for the decarbonization of oil and natural gas field operations. Globally, there are numerous onshore and offshore applications, especially for contaminated gas streams. Valverde has identified 28 initial oil field decarbonization projects requiring an estimated $4.6 billion in capital expenditures that collectively can sequester / eliminate approximately 8.6 million tonnes per year of CO2. The world-wide oil field decarbonization market segment is very large and is an important way to address GHG emissions.”
Aker Solutions has worked on projects and solutions for CO2 treatment since the 1990s. The company has extensive international experience with the delivery of end-to-end projects for the production of oil and gas as well as renewable energy.
“The CCUS technology being piloted in the Hestia project is unique and could prove to be a major tool in oil and gas field decarbonization. It produces affordable, reliable, and safe power at the oil & gas field while capturing the CO2 as part of the combustion, thus allowing it to be reinjected into the very same gas field. Short-traveled gas and short-traveled CO2. We believe this has the potential of reducing the cost of carbon capture to a level where meaningful scaling towards emission reduction objectives can be achieved. It also lends itself to offshore applications which is Aker Solutions’ domain. In particular, we see great potential for producing emission-free power for offshore installations. It could also act as base power for offshore wind and complement green hydrogen production. Regarding the latter, excessive oxygen from green hydrogen production could be used to boost efficiency,” says Truls Normann, Senior Vice President of Aker Solutions’ Power Solutions segment.
MISC’s extensive global operations service major and national oil companies who are placing increasing importance on carbon capture solutions in large oilfields and shipping.
“MISC is committed to advancing sustainable solutions as we transition towards low carbon operations to meet our Net-Zero GHG emissions agenda by 2050. Oxy-Fuel power generation technology is potentially a critical enabler to decarbonize the energy industry. It complements MISC’s efforts to achieve our sustainability goals by providing clean electrical power for our offshore assets and operations,” says Alexander James Brigden, Vice President of Offshore Business, MISC Berhad.
Based on proven rocket technology, CES Oxy-Fuel combustion systems produce clean, high- energy gases for use in industrial processes and the generation of electrical power. By using nearly pure oxygen instead of air, the only products of combustion are steam and CO2, which can be easily separated for carbon capture and permanent storage. The California-based company has been working to perfect the technology for more than 25 years.
“We are excited for the opportunities the Hestia project offers to help advance our industrial decarbonization efforts,” says Keith Pronske, CES President and CEO. “We look forward to collaborating with such an experienced and innovative team.”
Also joining the Hestia team is the Dutch engineering and project development group, TriGen Energy BV, contributing global Oxy-Fuel project experience focused on emission-free power generation. Calgary, Alberta-based Craft Power will also participate as Valverde’s partner in oil and gas Oxy-Fuel developments in Canada. Craft’s business plan is to develop clean power generation and proprietary, long-duration power storage solutions (including Oxy-Fuel), which complements and accelerates Valverde’s strategy.
The Hestia project plans to have its first North American carbon-free facility online by 2025.
Source: Valverde Power Solutions