Generic Hero BannerGeneric Hero Banner
Latest market news

US, China collaborate on Texas power, urea plant

  • : Electricity, Fertilizers
  • 14/07/14

Seattle-based Summit Power Group reached agreements last week at the US-China Strategic and Economic Dialogue in Beijing related to its development of the Texas Clean Energy Project (TCEP), a sign the project will move forward despite rising costs.

TCEP is a proposed 400MW integrated gasification combined cycle (IGCC) coal-fired power plant Summit is developing near Odessa, Texas, that will capture 90pc of its carbon for use in enhanced oil recovery by producers in the Permian basin of West Texas. The plant will cost about $2.5bn, up to $450mn of which will be covered by a Department of Energy grant.

Construction is expected to begin in summer 2015 with commercial operation scheduled for 2018. This schedule reflects delays of over a year from initial expectations because of rising costs.

In addition, TCEP will produce over 900,000st/yr of urea, which would increase domestic urea capacity by nearly a third based on The Fertilizer Institute's current semi-annual operating rates. Lastly, TCEP will produce about 50,000st/yr of sulphuric acid. The urea and sulphuric acid will be marketed by CHS and Shrieve Chemical, respectively.

At the meeting in Beijing last week TCEP and Huaneng's Clean Energy Research Institute were announced as the first of several collaborative arrangements in the US and China's efforts to reduce greenhouse gasses. Huaneng is the largest power generation company in China and built a 250MW IGCC plant, GreenGen, just outside Beijing, which will construct a carbon capture system similar to that planned for TCEP.

TCEP and Huaneng will work together in the planning and operation of TCEP and GreenGen's carbon capture systems by sharing information and results from the projects.

Summit also entered into a Memorandum of Understanding with China Huanqui Contracting & Engineering (HQC), which follows a contract signed between the parties two weeks ago for HQC to provide engineering services to the TCEP project. HQC has been reviewing project costs, which rose sharply in 2013 because of high Texas construction costs.

me/dcb

Send comments to feedback@argusmedia.com





If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.

Copyright © 2014 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.


Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more