“What we’re trying to do is augment and supplement that business and grow that side of the business by capturing, transporting and providing carbon sequestration services,” said Jesse Arenivas, the president of Kinder Morgan Energy Transition Ventures, in an exclusive interview with Bloomberg. “We see our CO2 business as a growth vehicle, not a dying business.”Article content
Energy companies including Occidental Petroleum Corp., Halliburton Co. and NextDecade Corp. have already formed ventures in the past year dedicated to the transition to low-carbon energy following growing pressure from investors to address climate change and develop new corporate strategies focused on sustainability. Climate scientists have long considered carbon capture as essential in meeting climate goals, but high costs have typically slowed the adoption process.
Carbon dioxide is not a new business for Kinder Morgan. The company transports about 1.5 billion cubic feet per day of naturally-occurring carbon dioxide through its largest CO2 pipeline from a geological formation in Colorado to the Permian Basin of West Texas, where it is used to boost the productivity of oil wells. It uses the CO2 for its own drilling projects and also sells it to others.
Kinder Morgan expects its CO2 business segment, including enhanced oil recovery in the Permian Basin, to account for about 7 per cent of earnings before depreciation and amortization, or EBDA, this year. Arenivas said the energy transition ventures unit and its carbon capture services have the potential to add new customers and partners, ranging from oil and natural gas well operators to power plants and industrial sites.
mmm ya that was a few billion dollar failure in Sask!