Delek US Holdings announced on Friday that the U.S. Department of Energy has selected its Big Spring refinery as the site for a pioneering carbon capture project. The project is set to receive substantial federal support, with up to $95 million in funding allocated to facilitate its development. Carbon capture, a crucial component of President Joe Biden's climate strategy, involves the storage of carbon dioxide generated from industrial activities underground, contributing to the administration's commitment to halve greenhouse gas emissions by 2030.
The selection of the Big Spring refinery for this pilot project aligns with the broader initiative to leverage Federal 45Q tax credits provided under the Inflation Reduction Act, with numerous carbon capture projects proposed across the United States. While the technology remains relatively expensive and unproven at scale, it has garnered significant attention and support from various nations aiming to address climate concerns.
Delek outlines that the primary objective of the project is to capture 145,000 metric tons of carbon dioxide annually, concurrently reducing other pollutants known to impact health. The refinery had previously demonstrated its commitment to carbon capture by investing in two start-ups dedicated to advancing this technology. Additionally, Delek expanded its footprint in the sector through the acquisition of 3Bear, a company holding a sequestration well permit in the United States.
The federal funding injection into the Big Spring refinery's carbon capture project marks a significant step toward advancing sustainable practices within the energy sector. As Delek aligns with the U.S. government's environmental objectives, this initiative underscores the collaborative efforts between industry players and governmental bodies in tackling climate change through innovative solutions.