USA: EPC Contracts Exxon Mobil to Expand CCS at its US-based LaBarge, Wyoming Unit

Editor: Ahlam Rais

Exxon Mobil has called for engineering, procurement and construction contract bids with an aim to capture up to 1 million metric tons of CO2 annually at its LaBarge, Wyoming facility in the USA. The proposed 400-million-dollar expansion project is expected to commence operations by 2025.

Related Companies

Exxon Mobil Low Carbon Solutions is evaluating several other large-scale carbon capture and storage projects in the US Gulf Coast, Europe and Asia.
Exxon Mobil Low Carbon Solutions is evaluating several other large-scale carbon capture and storage projects in the US Gulf Coast, Europe and Asia.
(Source: Pixabay)

Texas/USA – Exxon Mobil has recently initiated the process for engineering, procurement and construction contracts as part of its plans to expand carbon capture and storage (CCS) at its LaBarge, Wyoming facility, which has already captured more CO2 than any other facility in the world. The expansion project will capture up to 1 million metric tons of CO2, in addition to the 6-7 million metric tons already captured at LaBarge each year.

“The expansion of our carbon capture and storage operations at LaBarge underscores our commitment to advancing CCS projects around the world,” said Joe Blommaert, president of Exxon Mobil Low Carbon Solutions. “This technology is critical to help meet society’s lower-emissions goals, and with the right policies in place, is immediately deployable. Exxon Mobil has long supported policies that provide a predictable price on carbon emissions, which enable new or expanded carbon capture and storage investments.”

The LaBarge expansion project is in the design and permitting phase and a request for bids for engineering, procurement and construction contracts has been issued to third parties. A final investment decision is expected in 2022 and will be based on several factors, including regulatory approvals. Operations could start as early as 2025.

PROCESS Insights 2020-05
Challenges for EPC Contractors

With an influx of largescale petrochemical construction projects, EPC Contractors will have to be confronted with challenges such as finding enough capacity and quality of construction manpower, delayed permits etc. which require an EPC strategy to stay competitive in this ever-growing market.

This 12-page Process Insight will discuss the current changes in the EPC business and the impact of these changes on EPC projects. Besides the effect of the Coronavirus as well as the current oil price crash on the contracting industry will also be analyzed and an outlook for the industry will be given.

The proposed 400-million-dollar investment is the latest in multiple expansions of carbon capture at LaBarge. The location currently represents nearly 20 % of all CO2 captured in the world each year. The expansion will further mitigate emissions by capturing up to an additional 1 million metric tons of CO2 each year.

Exxon Mobil Low Carbon Solutions is evaluating several other large-scale carbon capture and storage projects in the US Gulf Coast, Europe and Asia. The company has an equity share in approximately one-fifth of global CO2 capture capacity and has captured approximately 40 % of all the captured anthropogenic CO2 in the world.

In addition to producing natural gas, LaBarge is one of the world’s largest sources of helium and produces approximately 20 % of global supply. Helium is a critical component in many fields, including scientific research, magnetic resonance imaging, high-tech manufacturing (semi-conductors), space exploration, and national defense.

Exxon Mobil continues to advocate for an explicit price on carbon to incentivize further public and private investments such as the LaBarge expansion, in the highest emitting sectors vital to society’s growing needs.

Exxon Mobil established its Low Carbon Solutions business to commercialize low-emission technologies. It is initially focusing its carbon capture and storage efforts on point source emissions, the process of capturing CO2 from industrial activity that would otherwise be released into the atmosphere, and injecting it into deep underground geologic formations for safe, secure and permanent storage. The business is also evaluating strategic investments in biofuels and hydrogen to bring those lower-emissions energy technologies to scale for the highest emitting sectors of the global economy.

(ID:47757111)