GREENWICH, Conn., April 2, 2020 /PRNewswire/ -- Starwood Energy Group Global, Inc. ("Starwood") announced today that it has finalized agreements with OGCI Climate Investments ("OGCI CI") to invest in the development of a large-scale carbon capture facility to be integrated with a natural gas power plant. Starwood and OGCI CI will co-invest in the initial development of the project, which will use commercially available CO2 capture technology and is expected to capture 90% of the CO2 emissions from an existing power facility. The captured CO2 will then be used in enhanced oil recovery and permanently sequestered in an existing oil field. The project will be jointly developed by Starwood and Elysian Ventures, LLC ("Elysian").
The project will seek to use Section 45Q tax credits for the deployment of carbon capture projects once final regulations are implemented, including potential upcoming legislative enhancements. The project will be non-recourse financed, with construction of the facility expected to commence in early 2021.
"We believe that the deployment of large-scale carbon capture for enhanced oil recovery is a unique opportunity to further enhance the value of critical power infrastructure, enabled by historically low natural gas prices and incentives for carbon sequestration," said Himanshu Saxena, CEO of Starwood. "We are excited to partner with OGCI CI in their mission to catalyze industry response to climate change, and to work with our partners at Elysian in developing this important project. Once constructed, this will become a premium asset and showcase for the deployment of this technology. We look forward to this project, and to exploring further carbon capture opportunities across multiple sectors, consistent with our ESG goals."
Pratima Rangarajan, CEO of OGCI Climate Investments, said, "We are pleased to partner with Starwood Energy and Elysian Ventures in a tangible demonstration that carbon capture is available and ready to use today. This project, along with our other three CCUS project investments, aims to keep over nine million tons a year of carbon dioxide from the atmosphere. That's the equivalent of taking almost two million cars off the road."
Bret Logue, Principal & Co-Founder of Elysian commented, "We at Elysian have been seeking transformational projects to develop that are financeable, replicable, and that will eliminate millions of tons of carbon emissions annually. Our partnership with Starwood and OGCI provides the technical and commercial experience and financial backing – from development through construction to operation – that immediately puts us on the road to achieving this goal."
Press contact for OGCI Climate Investments: [email protected] T. +44 (0)207 413 3448
About Starwood Energy Group
Starwood Energy Group is a private equity investment firm based in Greenwich, CT that specializes in energy infrastructure investments. Through its existing general opportunity funds and affiliated investment vehicles, Starwood Energy manages total equity commitments of approximately $3.0 billion and has executed transactions totaling more than $7 billion in enterprise value. For more information, please visit www.starwoodenergygroup.com
About OGCI Climate Investments
OGCI Climate Investments is a $1B+ fund that invests in solutions to decarbonize sectors like oil and gas, industrials and commercial transport. We look for outcomes that reduce methane and carbon dioxide emissions, and that can recycle or store carbon dioxide. Achieving significant impact requires global implementation and commercial frameworks – at OGCI Climate Investments, we collaborate with innovators, investors and governments to fund and implement impactful solutions. To learn more about OGCI Climate Investments, please visit www.oilandgasclimateinitiative.com/climate-investments
Elysian Ventures, LLC is a project developer whose team has decades of engineering, legal and project finance experience in the power and chemical sectors. Elysian is focused on capturing carbon value by developing projects that will sequester millions of tons per year of climate change causing emissions. For more information, please visit us at www.elysian.cc
SOURCE Starwood Energy Group Global, LLC