05-02-2024
Delek US Big Spring refinery selected by the Department of Energy for carbon capture project
Delek US Holdings Inc, today announced that it has been selected by the Department of Energy's Office of Clean Energy Demonstrations to negotiate a cost-sharing agreement in support of a carbon capture pilot project in the Big Spring refinery. The DOE Carbon Capture Large-Scale Pilot Project program provides 70% cost-share for up to $95 million of federal funding to support project development.
"We are honored and pleased the DOE has selected Delek's carbon capture project," said Avigal Soreq, President and Chief Executive Officer of Delek US. "The selection of the Big Spring refinery validates its competitive advantage, solid operations, and the opportunities in our assets. Carbon Capture is important for decarbonizing hard-to-abate sectors."
"This project will position Delek US as a strong leader in the energy transition while meeting our financial and other objectives for stakeholders and maintaining our disciplined approach to capital allocation," Soreq added. "We look forward to working with the DOE and leading industry partners to advance carbon capture technology in a safe and environmentally responsible manner."
The project will deploy Svante Technologies Inc.'s second-generation carbon capture technology at the Delek Big Spring refinery's fluidized catalytic cracking unit (FCCU), while maintaining existing production capabilities and turnaround schedule. Expectations for the project are to capture 145,000 metric tons of carbon dioxide per year, as well as reduce health-harming pollutants, such as SOx and particulate matter. Carbon dioxide is expected to be transported by existing pipelines for permanent storage or utilization. A goal of the Big Spring refinery FCCU pilot is to achieve cost reductions and help commercialize carbon capture technology.
As part of Delek's commitment to the communities in which we operate, this project provides opportunities for advancement of our skilled workforce. Delek will partner with the International Union of Operating Engineers (IUOE) and the United Steelworkers (USW) to execute the project. In addition, a carbon capture schoolhouse will be established to equip current and future workforces with valuable skillsets needed for the energy transition. The project is expected to create approximately 200 construction and operations jobs in 2027 and 2028.
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