The Texas Clean Energy Project (TCEP) is a “NowGen” Integrated Gasification Combined Cycle (IGCC) facility that will incorporate carbon capture, utilization and storage (CCUS) technology in a first-of-its-kind commercial clean coal power plant. TCEP will be a 400MW power/poly-gen project that will also produce urea for the U.S. fertilizer market and capture 90 percent of its carbon dioxide (CO2) – approximately 2 million tons per year – which will be used for enhanced oil recovery (EOR) in the West Texas Permian Basin. TCEP is being developed by Seattle-based Summit Power Group, which in December 2015 signed an engineering, procurement and construction (EPC) contract with China Huanqui Contracting & Engineering Corporation (HQC), a subsidiary of China National Petroleum Corporation (CNPC), and SNC-Lavalin, a Montreal-based engineering and construction group. TCEP received its final air quality permit from the Texas Commission on Environmental Quality (TCEQ) on December 28, 2010. The project will be located in Penwell, Texas, 15 miles west of Odessa.
The Texas Clean Energy project will be the first United States based power plant that combines both Integrated Gasification Combined Cycle and 90 percent carbon capture and storage technologies. It is scheduled for financial closing in spring 2016, with a groundbreaking shortly thereafter.
As part of the U.S.-China Climate Change Working Group CCUS Initiative, launched by U.S. Secretary of State John Kerry in 2013, Summit and China Huaneng’s Clean Energy Research Institute signed a Framework Agreement in Beijing, China, on July 8, 2014 for the companies to work together on TCEP and Huaneng’s GreenGen project, a 250MW IGCC in Tianjin, China that will be adding carbon capture in its upcoming Phase 2 and using the captured CO2 for EOR.
“TCEP is a key part of the U.S. CCUS portfolio, and DOE has invested $450M into the project,” stated U.S. DOE’s Principal Deputy Assistant Secretary of the Office of Fossil Energy, Christopher A. Smith, in a letter on 7/3/14 to China’s National Energy Administration Deputy Administrator Zhang Yuqing. “Summit Power and Huaneng will help each other in the planning and operation of TCEP and Phase 2 of GreenGen by sharing non-proprietary information and results from the respective projects.”