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Continental Resources invests in CCS project: Update

  • Market: Biofuels, Crude oil, Emissions
  • 02/03/22

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US oil and gas producer Continental Resources is investing $250mn in a project to pipe CO2 to North Dakota where it will be permanently buried underground.

Summit Carbon Solutions is aiming to capture the CO2 from ethanol plants and other industrial sources in Iowa, Nebraska, Minnesota, North Dakota and South Dakota. The CO2 will be then be transported to North Dakota via a 680-mile (1,094km) pipeline, where it will be stored in subsurface geologic formations.

The strategic investment in Summit from Continental Resources over the next two years will help fund the development and construction of the project's associated capture, transportation and sequestration infrastructure.

The carbon capture and sequestration (CCS) project has commitments from 31 ethanol facilities to deliver more than 8mn metric tons (t) a year of CO2, with an initial pipeline capacity of 12mn t/yr.

Cutting the carbon footprint of ethanol production in half will give the plants access to new markets that have implemented low-carbon fuel standards, according to Summit. Last month, the company filed a pipeline permit application in Iowa, where the bulk of the committed ethanol facilities are located.

"Carbon capture will play an integral role in helping reduce global emissions, and we believe Summit Carbon Solutions has the most capital-efficient project to further this goal," Continental Resources chief executive Bill Berry said.

Continental will use its geologic expertise to ensure the safe and secure storage of CO2. The first interstate CCS project in the US has an estimated start-up date of first half 2024.

Carbon capture from ethanol is one of the lowest-cost options available, Berry said in an interview.

"This was something that we looked at quite a while back saying, 'Is this a type of project that we would see as the right thing to do?'" Berry said. "And we said, 'Yes.'"

Although the project has already met with some opposition from local landowners, Bruce Rastetter, who heads parent company Summit Agricultural Group, is optimistic this could be overcome.

"It's actually really beneficial to the farmer in terms of the easement reflecting today's land value," he said.

Continental has long operated in the Bakken shale of North Dakota, but recently took a major step into the Permian basin in Texas and New Mexico with its $3.25bn purchase of assets from Pioneer Natural Resources.


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21/02/25

Chinese biomethanol producers target marine fuel market

Chinese biomethanol producers target marine fuel market

Singapore, 21 February (Argus) — Chinese green energy firms have been developing biomethanol plants to supply the maritime sector, and view green methanol as an attractive option to decarbonise shipping, said speakers at the Argus Green Marine Fuels Asia conference in Singapore on 18-19 February. Used cooking oil (UCO) methyl ester (Ucome)-based marine biodiesel and green methanol are expected to be the main alternative marine fuels in the next decade, according to founder of biofuel brokerage Motion Eco, Shutong Liu. But biomethanol is likely to grow in importance because of the limited supply of feedstock UCO, which will need to be shared across bio-bunkering, on-road and aviation fuel demand. Chinese green methanol suppliers have announced more than 100 projects to produce over 30mn t/yr of green methanol, according to Liu. The planned projects comprise 12mn t/yr of biomethanol and 18mn t/yr of e-methanol capacity. Energy, chemical engineering and food equipment firm CIMC Enric, for example, is constructing a biomethanol plant to produce 50,000 t/yr by the fourth quarter of 2025 in Zhanjiang in Guangdong with a planned capacity increase to 200,000 t/yr by 2027, said the company's director David Wang. The factory has 20,000t of storage capacity for biomethanol, Wang added. Chinese wind turbine supplier and biomethanol producer GoldWind will start up two 250,000 t/yr biomethanol plants , with one unit starting up by the end of 2025 and the other in late 2026, said the company's vice-president Chen Shi. Biomethanol is produced by converting biomass into syngas through gasification, often with the addition of green hydrogen, before reacting with a catalyst to produce methanol. E-methanol is produced by combining captured CO2 with green hydrogen, but is considered far less commercially viable than biomethanol because of higher production costs and less established technology. Both alternatives can be blended with fossil methanol for marine fuel usage because of their identical molecular properties to the conventional fuel. Money matters Panellists said a slowing Chinese economy and high investment costs remain a barrier for suppliers to ramp up biomethanol production. Securing long-term offtake agreements with reputable end-users is often needed to progress green fuel production projects at scale, said Swire's shipping and bulk chief sustainability officer, Susana Germino. Chinese biomethanol producers have also sought long-term offtake agreements with shipowners to move to final investment decisions (FID) on their projects, Chen said. GoldWind signed a long-term offtake agreement for biomethanol with Danish container shipper Maersk in 2023, and reached an FID on its biomethanol unit in Inner Mongolia the following year. But pricing these contracts remains a challenge. Green methanol must benchmark against its main rival marine biodiesel to attract buyers, Liu said, despite its higher production costs. Even then, marine biofuels are often more attractive as they are operationally easier to bunker, he added. By Malcolm Goh and Lauren Moffitt Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Oil, biofuel lobbies unite for ‘robust’ RFS: Update


20/02/25
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20/02/25

Oil, biofuel lobbies unite for ‘robust’ RFS: Update

Updates with comments from trade groups, details throughout. New York, 20 February (Argus) — Oil and biofuel groups, at loggerheads years ago over the federal Renewable Fuel Standard (RFS), have united around a call for US regulators to set "robust" biofuel blend mandates for future years. A diverse coalition of 11 trade associations — including the American Petroleum Institute, Clean Fuels Alliance America, farm groups, and fuel marketers — said in a Wednesday letter to the Environmental Protection Agency (EPA) that the RFS is a way to "advance liquid fuels" and "ensure consumers have a choice of how they fuel their vehicles". They want EPA, which is behind schedule on setting volume mandates for 2026, to set multiyear standards that better reflect recent growth in feedstock availability and production capacity than past RFS regulations. "We're trying to send a signal to the administration: hey, we're in more agreement than we used to be," American Petroleum Institute vice president of downstream policy Will Hupman told Argus . "We want to work constructively with you on this. We understand we're going to need all energy sources and supplies." The letter reflects the increasingly aligning interests of groups that formerly split over biofuels. Many oil companies that opposed the RFS in its early years have since invested heavily in fuels like renewable diesel, making strong government biofuel mandates crucial for their businesses, too. And producers of petroleum and biofuel products alike fear that rising electric vehicle adoption, aided by policies during the administration of President Joe Biden, could curb liquid fuel demand. It is unclear how durable any coalition of oil, biofuel, and farm groups will prove, especially for more divisive issues like RFS exemptions for small refineries. The oil industry is not united either, since small merchant refiners with less ability to blend biofuels have generally been more hostile to the RFS than larger integrated companies. The American Fuel and Petrochemical Manufacturers, which did not sign the letter, said that it looks forward "to engaging with EPA and other stakeholders to set realistic and achievable RFS standards anchored in the law". Still, the letter reflects some attempt among the signatories to downplay disagreements that surfaced around past RFS rules, signaling to President Donald Trump's administration that it need not delay program updates. The groups say they support, for instance, "strong, steady volumes" of not just biomass-based diesel and advanced biofuels but conventional biofuels too. While refiners can meet conventional obligations by blending excess amounts of lower-carbon fuels from other program categories, oil interests have previously criticized EPA for setting conventional requirements above expected corn ethanol consumption. The prior US administration set a plan for proposing new RFS volumes next month and finalizing them by the end of 2025 , though it is unclear whether Trump officials plan to meet that timeline. Two biofuel groups have sued EPA over its delays setting new mandates, a process which in the past has resulted in the government and industry coming to a negotiated agreement around a new timeline. Under the RFS program, EPA sets annual mandates for blending different types of biofuels into the conventional fuel supply. Refiners comply by blending biofuels themselves or buying credits from those who do. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US cites 'energy emergency' to expedite water permits


20/02/25
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20/02/25

US cites 'energy emergency' to expedite water permits

Washington, 20 February (Argus) — President Donald Trump's administration is citing an "energy emergency" as the basis to fast-track nearly 700 water permits, including those tied to a tunnel for Enbridge's Line 5 pipeline, LNG infrastructure projects, solar farms and electric transmission lines. Trump declared a national energy emergency on his first day in office, unlocking permitting powers that are typically used in response to natural disasters. The US Army Corps of Engineers has subsequently reclassified hundreds of permit applications for review under expedited emergency procedures, in a move that environmentalists say they plan to challenge in court based on violations of the Clean Water Act and Endangered Species Act. "The Trump administration is planning to skirt legally-required review processes in order to fast-track permits for dirty energy projects under the guise of an energy ‘emergency'", Sierra Club policy director Mahyar Sorour said. The Corps is responsible for issuing water permits for projects that cross streams, rivers, wetlands and other water bodies. Issuing permits sometimes requires the agency to prepare a detailed environmental review that is open to comment and can take years to finish. The water permits classified for emergency treatment include a repair project for Sabine Pass LNG in Louisiana, dredging for Elba Island LNG in Georgia, temporary construction related to Port Arthur LNG in Texas, solar projects in dozens of states, and pipeline projects ExxonMobil is pursuing in Texas. Enbridge delayed construction of a protective tunnel for its Line 5 pipeline to 2026 because of water permitting delays . But environmentalists say the administration cannot cite an energy emergency — which they say does not exist — as justification to bypass permitting rules prescribed by the US Congress. The Corps has also provided emergency treatment to projects with no apparent connection to energy production, such as a housing project in southern California and a gold mine in Idaho, according to an online database. The Corps did not respond to detailed questions but said it was "in the process of reviewing active permit applications relative to the executive order." Congress is continuing to lay groundwork for a bipartisan permitting bill that supporters say could make it faster and cheaper to build pipelines, power plants, electric transmission lines, renewable energy projects and transportation infrastructure. But Democratic leaders are threatening to vote against such a bill so long as Trump continues to "pause" billions of dollars in funding for clean energy projects provided by the Inflation Reduction Act and other laws. "Until the administration shows it will honor its oath to faithfully and impartially execute the laws, we can have zero confidence that any legislative compromise on permitting reform will be executed lawfully," US senator Sheldon Whitehouse (D-Rhode Island) said at a permitting hearing on 19 February. Oil industry and renewable groups are continuing to push for a comprehensive permitting bill, which they say would bring down project costs and help the US meet surging electricity demand from data centers and manufacturers. Permitting changes are "needed for all technologies, and they are needed to meet our energy demand in the future," Business Council for Sustainable Energy president Lisa Jacobson said. "You can't walk away from those facts or that imperative." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Guyanese refinery not off the table: Minister


20/02/25
News
20/02/25

Guyanese refinery not off the table: Minister

Georgetown, 20 February (Argus) — Guyana's tentative plans to start a venture with a US midstream company to refine its oil overseas and bring it back into the country for storage and distribution does not necessarily mean a domestic refinery is no longer an option. "I would not put it off the table," natural resources minister Vickram Bharrat told Argus today on the sidelines of the Guyana Energy Conference and Supply Chain Expo in Georgetown, Guyana. "But what we were told by many companies is that a 30,000 b/d refinery might not be economical, that we may have to do 50,000 b/d or 100,000 b/d." Such a refinery would require a guarantee for sufficient feedstock before a company would agree to build it, he said. The government may be in a better position to pursue both options when the ExxonMobil-led consortium behind the giant offshore Stabroek block development has six floating production storage and offloading (FPSO) units up and running in the next few years, he said. Chevron-Exxon dispute not a concern Guyana is not taking sides in the dispute between ExxonMobil and Chevron over the future of Hess' 30pc stake in Staebroek, Bharrat said, as it has "no particular preference" as to how it plays out. Chevron's pending $53bn takeover of Hess was largely driven by its stake in Staebroek, but ExxonMobil argues it has a right of first refusal for Hess' share. An international arbitration case will resolve the issue in May. "Our position was clear from the start," Bharrat said. "If that was not going to affect the operations in Guyana — and we were told it will not — then we are fine." Guyana has a "good relationship" with Hess, which has agreed to buy carbon credits from the government, he said. "We have no issue with Chevron coming in either," he said. "Chevron would add value to the Guyana basin." With general elections coming up in Guyana later this year, there are signs the opposition party may seek to renegotiate oil contracts. But Bharrat said the current administration is not renegotiating the Stabroek production sharing agreement it signed previously. Bharrat repeated his enthusiasm for the country's natural gas potential, including a plan for a gas processing facility which could help the company diversify the economy away from its oil wealth. "That project will cater for a small amount of fertilizer production, especially for local consumption, because we import a lot of fertilizer and we're expanding our agricultural sector," he said. Guyana's relatively new entry into global oil markets means the threat of the "oil curse" — in which oil-rich countries tend to have less economic and social stability — still looms large. But Bharrat said that so far "... we've been doing a good job." Other up-and-coming oil producers such as Namibia and neighboring Suriname have visited Guyana to learn how the government has developed its oil sector in such a short period of time, he said. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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2025 will be ‘pivotal’ for ExxonMobil in Guyana


19/02/25
News
19/02/25

2025 will be ‘pivotal’ for ExxonMobil in Guyana

Houston, 19 February (Argus) — ExxonMobil said 2025 is shaping up to be "very pivotal" for the company's operations at the giant Stabroek offshore block in Guyana as the pace of projects speeds up. The US oil and gas producer has just submitted the draft environmental impact assessment for the Hammerhead project to Guyana's Environmental Protection Agency, ExxonMobil's Guyana president Alistair Routledge said today at the Guyana Energy Conference and Supply Chain Expo in Georgetown. "We target reaching final investment decision for that project in the middle of the year, subject, of course, to us completing the full environmental permitting process and the production license process," he said. Hammerhead is forecast to deliver up to 190,000 b/d when it is brought up to full capacity by the end of 2029. Next year, ExxonMobil plans to reach a final investment decision on Longtail, which will be the first to target non-associated gas in the southeast area of Stabroek. "We'll develop a significant resource base of gas, but also condensates, liquids," Routledge said. Gas output is pegged at up to 1.2 bcf/d when it starts at the end of the decade. Routledge acknowledged the government's impatience to move faster on gas development plans. "We want to move quickly," he told the conference. "But for those in the industry, you will understand the additional complexity and challenges that gas brings." This includes higher transport and storage costs than oil and lower energy density. That means it takes more effort to advance gas projects, especially in a country like Guyana that does not have an existing market. A $1bn pipeline that will ship gas from Stabroek to a planned power plant and natural gas liquids complex — the centerpiece of Guyana's promised gas-to-energy project — is already complete. "We're ready to deliver gas onshore to that very first domestic gas project that will deliver real benefits to Guyana," Routledge said. The Guyanase government has plans in motion to build a second power plant, and then a fertilizer plant, which will support the country's agricultural sector as part of a diversification drive. Routledge outlined other possible strategies to further develop the country's gas resources, including data centers like those spreading elsewhere to power artificial intelligence services. "We've had conversations with some potential investors," Routledge said. "That's on our radar." There is also the option of connecting Guyana's gas resources to world markets. "While it may be cost prohibitive to lay a pipeline all the way to Trinidad, there is still the possibility of using liquefied natural gas technology to connect us to global markets," Routledge said. "That is a further option that is on the table and being investigated." By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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