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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: energyplay who wrote (125942)11/25/2009 9:22:52 PM
From: Ed Ajootian  Read Replies (2) of 206304
 
energyplay, Resolute gets its CO2 from a nearby geological dome, McElmo Dome. I haven't heard of any opportunities to tie in to man-made CO2 sources where they are.

Denbury Resources is very actively pursuing this strategy, and is spending something like $1 B to build a 320 mile pipeline from eastern Louisiana to a point south of Houston, with the idea of not only transporting some of their own CO2 from their massive Jackson Dome in LA, but also tieing in certain industrial facilities that lie along the pipeline route to take those facilities' CO2. DNR has recently signed an MOU with the first of these facilities, a Dow Chemical plant, and it will be interesting to see what the terms of the deal are once they get hammered out. It would seem that Dow needs Denbury more than Denbury needs Dow so it would not be a huge surprise if Dow ends up paying Denbury something to take the CO2 off Dow's hands.
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