NextDecade Corporation has withdrawn its carbon capture and storage application for the Rio Grande LNG facility. The application was submitted to the Federal Energy Regulatory Commission (FERC) but a DC court of Appeals decided the company’s permit was to be vacated because an Environmnetal Impact Statement wasn’t issued.
NextDecade Chairman and CEO Matt Schatzman said: “We appreciate the FERC’s diligence during the review process. The CCS project at Rio Grande LNG is not sufficiently developed to allow FERC review to continue at this time. We remain committed to advancing and lowering the cost of utilizing carbon capture and storage and helping companies reduce their facility emissions and achieving their clean energy goals.”
The project has been in the works for a number of years and the deadline for the completion of its phase 1 is set for 2029.
With a current price tag of $18 billion the three liquefaction trains of the project will continue with construction works but the company will likely have to reasses its forecasts for the start of works on the fourth train.
Current EPA regulations state that natural gas projects need to deploy carbon capture to operate, though there are challenges by a number of industry organizations and two dozen Republican-led states.
Read more: U.S. Court Of Appeals Says EPA Emissions Rule For Natural Gas And Coal To Proceed
