EPA approves Permian's largest CCS project
Lucid Energy plans to sequester 500,000 metric tons of CO2 and hydrogen sulphide annually at the Permian basin's largest gas processing complex, in Red Hills, New Mexico, the company said on January 11.
The Red Hills complex is composed of five plants with a combined capacity of 920mn ft3/day.
“Since our entry to the Delaware Basin five years ago, Lucid has targeted investments in large-scale gas treating assets, which empower our customers to develop highly economic drilling locations with associated off-spec gas,” said Lucid CEO Mike Latchem. “This strategy has proven beneficial for all stakeholders, as Lucid currently removes more CO2 from Permian Basin shale production than any other midstream operator."
Lucid is the "perfect candidate to develop the largest CCS project in the Permian basin by simply modifying and expanding our existing operations," he continued. "We are committed to finding safe, creative and effective ways to serve the growing needs of our customers while reducing our environmental footprint.”
The project proposes to provide section 45Q tax credits for the sequestration and permanent storage of CO2 in Lucid’s disposal wells.