Oxy Low Carbon Ventures, LLC, a subsidiary of Occidental (NYSE: OXY), announced today it was awarded a contract to provide Carbon Storage Consulting Services for Project Tundra, an initiative led by Minnkota Power Cooperative, to build the world's largest carbon capture facility at the Milton R. Young Station - a coal-fired power plant, near Center, North Dakota.
A leader in the multi-disciplinary execution of carbon management, Oxy Low Carbon Ventures will advise Minnkota on the safe design and overall requirements of Project Tundra's storage facility. Oxy Low Carbon Ventures leverages Occidental's 40+ years of carbon management expertise, in which it safely processes, transports and stores approximately 20 million metric tonnes of carbon dioxide (CO2) annually in its operations.
Occidental has developed standards and protocols recognized by the U.S. Environmental Protection Agency (EPA) for monitoring, reporting and verifying the amount, safety and permanence of CO2 stored through secure geologic sequestration. The company holds the nation's first two EPA-approved monitoring, reporting and verification plans for geologic sequestration through enhanced oil recovery production. Oxy Low Carbon Ventures will apply this singular expertise and know-how to advise Minnkota on the safe design and overall requirements for Project Tundra's storage facility.
"Project Tundra is one example of how our experience in carbon management is helping industry realize its carbon reduction goals," said Dr. Doug Conquest, Vice President, Services, Oxy Low Carbon Ventures. "The potential for underground sequestration of CO2 is on the order of billions of tonnes per year, and Oxy Low Carbon Ventures is perfectly positioned to help companies and governments meet their ambitions to address climate change. We commend the Minnkota Power Cooperative on their leadership and vision."
In preparation for the potential start of construction in early 2022, Minnkota is conducting comprehensive front-end engineering and design (FEED) studies, partly funded with grants from the U.S. Department of Energy (DOE) and the North Dakota Industrial Commission (NDIC). Oxy Low Carbon Ventures will advise on the CO2 storage portion of the project, including transportation and secure geologic sequestration, in collaboration with the University of North Dakota's Energy and Environmental Research Center (EERC), an effort that received funding from the NDIC and the CarbonSAFE Phase III program awarded by the DOE in April.
"Our partnership with the EERC and Oxy Low Carbon Ventures will ensure we have the right expertise on board to safely and permanently store carbon dioxide so that the Young Station can produce over 350 MW of firm and low-carbon power for our members," said Mac McLennan, President and CEO, Minnkota Power Cooperative.
Geologic sequestration is a permanent solution for industries seeking to reduce their carbon footprint and meet their CO2 emission reduction objectives. It is only one of several approaches and technologies Oxy Low Carbon Ventures is implementing. Through its 1PointFive joint venture, Occidental is commercializing direct air capture facilities to pull CO2 out of the atmosphere and permanently sequester it deep underground. According to the DOE, there is enough underground storage available in the United States to address carbon emissions for hundreds of years, which is needed as the world transitions to sustainable energy.
About Oxy Low Carbon Ventures
Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of Occidental, an international energy company with operations in the United States, Middle East, Africa and Latin America. OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance Occidental's business while reducing emissions. OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally. Visit www.oxylowcarbon.com for more information.
About Minnkota Power Cooperative
Minnkota Power Cooperative is a not-for-profit electric generation and transmission cooperative headquartered in Grand Forks, N.D. Formed in 1940, Minnkota provides wholesale electric energy to 11 member-owner distribution cooperatives located in eastern North Dakota and northwestern Minnesota. These members serve more than 140,000 consumer accounts in a 34,500 square-mile area. The Milton R. Young Station is a key source of electrical generation for Minnkota and its members. Visit www.minnkota.com for more information.
Cautionary Statement Regarding Forward-Looking Statements by Occidental
Any statements in this release relating to expectations, beliefs, plans or forecasts, including any statements relating to the success, capability or scalability of the project, that are not historical facts are forward-looking statements. These statements are typically identified by words such as "potential," "will," "would," "should," "may," "plan," "believe," "expect," "designed to," or similar expressions that convey the prospective nature of events or outcomes. Actual results, including those related to project plans and timing; the impact and results of new technologies; and emission reductions, could vary from anticipated results, sometimes materially. Factors that could cause actual results to differ include, but are not limited to: the scope and duration of the COVID-19 pandemic and actions taken by governmental authorities and other third parties in response to the pandemic; global commodity pricing fluctuations; supply and demand considerations for carbon capture and sequestration technologies; the competitiveness of alternative energy sources or product substitutes; higher-than-expected costs; the regulatory environment; availability of funding, personnel and materials; litigation; actions by third parties; failures in risk management; and changes in laws, regulations or tax rates. Unless legally required, Occidental does not undertake any obligations to update any forward-looking statements, as a result of new information, future events or otherwise. Material risks that may affect the results of Occidental and its subsidiaries appear in Part I, Item 1A "Risk Factors" of Occidental's Annual Report on Form 10-K for the year ended December 31, 2019 and in Occidental's other filings with the Securities and Exchange Commission.
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