Rentech, Inc. announced an agreement with Denbury Resources Inc. for the sale, transport and use of all captured carbon dioxide from Rentech’s proposed synthetic fuels plant to be built in Natchez, Mississippi for oil recovery efforts in the region. (Earlier post.)
Under the long-term agreement, Denbury will build a pipeline and transport the captured carbon dioxide produced as a byproduct at the Rentech facility. Denbury will then inject the captured carbon dioxide underground into depleted oil fields to produce otherwise unrecoverable oil reserves.
Rentech and Denbury expect to obtain and share the value of any federal, state or voluntary carbon dioxide emissions reduction credits available as a result of these activities.
Using the patented Rentech process, the Natchez Strategic Fuels and Chemicals Center will be designed to use petroleum coke, coal and biomass as feedstocks. The project will initially produce 25,000 barrels per day of synthetic fuels and specialty chemicals and will be expandable to 50,000 barrels per day.