Denbury to buy anthropogenic carbon dioxide for EOR use

By OGJ editors
HOUSTON, Mar. 16 -- Denbury Resources Inc., Plano, Tex., entered into two contracts for purchasing anthropogenic carbon dioxide for enhanced oil recovery projects from two future sources in the Gulf Coast and Rocky Mountain regions.

Denbury plans to purchase all CO₂ captured from the DKRW Advanced Fuels LLC’s Medicine Bow Fuel & Power LLC project in Medicine Bow, Wyo., and 70% of the CO₂ captured from Mississippi Power Co.’s integrated gasification combined-cycle project in Kemper County, Miss.

DKRW's industrial coal gasification and liquefaction facility will capture about 200 MMcfd of CO₂ and clean, compress, and deliver the CO₂ for EOR in Denbury’s oil fields in the Rocky Mountain region and ultimately for sequestration in its CO₂ EOR reservoirs.

Denbury expects first CO₂ deliveries in late 2014 or early 2015, pending construction of the plant, which has not yet commenced.

Mississippi Power, a wholly owned subsidiary of Southern Co., has initiated construction of its 582-Mw IGCC power plant and will capture, clean, compress, and deliver for EOR about 115 MMcfd of CO₂ to Denbury’s Heidelberg field in Jasper County, Miss.

Denbury expects first CO₂ deliveries in 2014.

Denbury said the cost of CO₂ from these two plants is priced competitively with the company’s other potential anthropogenic CO₂ supplies.