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The race for landmark CCS project: North Dakota approves Class VI well for Red Trail Energy

Thanks to the North Dakota Industrial Commission (NDIC) blessings, Red Trail Energy LLC (RTE) is now able to commercially capture, compress, and inject 180,000 tons of carbon dioxide per year into the Broom Creek Formation on its property for permanent geologic CO2 storage.

Watchdog work at Flickertail State on geologic sequestration of CO2 is unrivaled in the country. As of 2018, North Dakota was the first state to receive primacy for Class VI wells from the United States Environmental Protection Agency (EPA), followed by Wyoming only in 2020.

And now a breakthrough was achieved: RTE may geologically store CO2 at its ethanol facility near Richardton after approval from the Department of Mineral Resources (DMR) on October 19. In addition to deciding the financial obligations, the orders confirm the creation of the required pore space for the reservoir storage required to operate the facility.

RTE's initial construction was as a coal-fired ethanol plant, but in 2016 it was converted to natural gas. On an annual basis, RTE produces 59-64 million gallons of ethanol using 21-23 million bushels of corn. The resulting fermentation process at RTE releases approximately 180,000 metric tons of high-purity CO2 every year during ethanol production. Accordingly, RTE has received approval to commercially capture (dehydrate and compress) and inject 185,000 metric tonnes of CO2 into the Broom Creek Formation on its property for permanent geologic CO2 storage.

A project developed by Red Trail in conjunction with the Energy & Environmental Research Center ensures that carbon dioxide can be stored safely for generations to come. In response to such a policy, the company's innovative and rigorous approach was commended by the watchdog for setting the standard for future carbon capture applications.

The EPA classifies wells into various categories. Geologic sequestration refers to injecting CO2 deep into rock formations for long-term storage - Class VI well is used to do this. The goal of geologic carbon sequestration is to reduce or eliminate the release of carbon dioxide into the atmosphere by storing the gas in deep geologic formations.

It is possible to capture carbon dioxide from stationary sources such as power plants and other large industrial facilities, compress it, and inject it into porous, permeable geologic layers, where it will remain relatively isolated. A layer of impermeable rock must be deposited over the geologic formation where the CO2 is stored to keep it in.

The state's geological resources were first evaluated 18 years ago, and North Dakota policymakers developed the legal and regulatory framework for geological storage 12 years ago. As North Dakota continues to develop its abundant geological resources, the approval of the RTE permits represents a major milestone.

Additionally to the permits, RTE received a $25 million loan from the USDA under the Rural Energy for American Program in September 2021 for its carbon capture and storage project (CCS). Simultaneously, a $500,000 matching grant from the NDIC was awarded to the Energy and Environment Research Center for the development of the RTE CCS project back in June.

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The Hunting Season Is Not Over Yet: Exxon Mobil makes a $400 million commitment to Wyoming's carbon capture

Carbon footprint reduction is a new hot trend: Exxon Mobil makes a $400 million investment into its LaBarge facility to expand its carbon capture and storage capabilities by another million metric tons of CO2. Operational activities could begin as early as 2025 after a final investment decision is made in 2022. At present, about 20% of all CO2 captured worldwide each year is captured at the LaBarge. However, as one of the largest of the world's Big Oil companies, it is not the only project in Exxon's pipeline: aside from CCS capabilities, the LaBarge is one of the world's largest sources of helium, producing approximately 20% of global supply

On December 9, Crescent Point Energy Corp. announced a purchase and sale agreement to develop its core Kaybob Duvernay assets, which will bolt on production, the midstream infrastructure and technical data. With the deal, the company has committed more than US $1 billion to the play. Crescent Point, the Alberta-based company, is purchasing almost 65,000 net acres from Paramount Resources Ltd. for CA $375 (US $274 million) cash. The assets estimate more than 4,000 boe/d, 50% liquids, and include a gas plant, associated pipelines, water infrastructure, and seismic data. The acquired asset’s production consists of 35% condensate, 15% NGL, and 50% shale gas.

In order to sell its part of the sprawling Eagle Ford Shale acreage, Chesapeake Energy Corp. on January 18 concluded an agreement to trade its Brazos Valley region assets to WildFire Energy I LLC for $1.425 billion.

On January 6, Phillips 66 announced that it plans to acquire more than 43% of DCP Midstream LP for $3.8 billion, expanding the business in the oil & gas business.

On January 5 Northern Oil & Gas (NOG) concluded a deal to acquire working interests in Midland-Petro D.C. Partners LLC (MPDC)'s Mascot Project in the Midland Basin, according to a January 9 press release. Firstly estimated at $330 million in cash, the deal was signed with an additional 3.25% working interest added to the 36.7% agreed upon when the transaction was announced on October 19. NOG paid $29 million more for the additional interests, which now totalled 39.958%. Finally, the deal closed for $320 million in cash and $43 million in debt at signing in October with the finance of Minnetonka, Minn.-based NOG with cash on hand, operating free cash flow, and assistance from its revolving credit facility.

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