Following a Memorandum of Understanding (MoU) signed between Xebec Adsorption Inc and Summit Carbon Solutions at the end of March, Xebec announced on April 12th, that it has finalized a contract with Iowa-based SCS Carbon Removal LLC – a subsidiary of Summit Carbon Solutions.
The contract is valued at $113.5 million and is from Summit to Xebec for the order of 51 carbon dioxide (CO2) reciprocating compression packages. The equipment will be used for Summit’s proposed carbon capture and sequestration pipeline project, which is expected to be the largest in the world if approved.
“We are pleased to be a key supplier to Summit’s project for decarbonization… With this important order, we look forward to helping bring this CO2 pipeline to fruition and playing our continued part in the global energy transition,” said Jim Vounassis, President and CEO of Xebec Adsorption Inc.
The order is major for Xebec’s expanding technology portfolio for carbon capture and sequestration solutions. It also could be used as a showcase for the increasing demand towards carbon capture innovation and services across various industries.
Summit expressed its intentions to carry out this deal in March by signing a MoU announced at $100 million at the time. Formalizing this agreement now is paving the way for bringing the extensive carbon capture pipeline to fruition and thus accelerating the CO2 capture and storage business in the US.