Colorado gas plant catches CO2 for EOR

Blue Source LLC announced the startup of a carbon dioxide reduction, carbon offset project at the Apple Tree LLC gas processing plant in Huerfano County, Colo.

Oct 17th, 2007

By OGJ editors
HOUSTON, Oct. 17 -- Blue Source LLC announced the startup of a carbon dioxide reduction, carbon offset project at the Apple Tree LLC gas processing plant in Huerfano County, Colo.

The CO2 is being sold for use in enhanced oil recovery in the Permian basin. A carbon capture and storage (CCS) developer, Blue Source said the Apple Tree gas plant is at the foothills of the Rocky Mountains near La Veta, Colo.

Gas produced from Oakdale field is 22% methane and 78% CO2. The gas is separated using membrane modules. Before start of the CCS project, CO2 was vented into the atmosphere. The CCS project is reducing CO2 emissions by about 400,000 tonnes/year.

On Oct. 8, Blue Source announced CO2 was captured from the vent stack and transported via the Sheep Mountain CO2 pipeline to be used EOR projects. The Apple Tree vent stack and an associated 16-mile pipeline cost $8 million, Blue Source said.

"This will further help produce a considerable amount of domestic oil in underused oil fields," said Russell Martin, Blue Source executive vice-president. He said confidentiality agreements prevent Blue Source from naming CO2 buyers or outlining EOR projects.

Apple Tree Holdings LLC is managed by Manzano LLC of Roswell, NM.

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