Summit Carbon Solutions’ subsidiary SCS Carbon Removal LLC signed a Memorandum of Understanding (MoU) with Xebec Adsorption Inc. – a global provider of sustainable gas technologies, for the supply of 51 carbon dioxide (CO2) reciprocating compression packages to SCS Carbon Removal.
The deal is worth $100 million and the compression packages will be used for Summit Carbon Solutions’ proposed carbon capture and sequestration (CCS) project, which is the largest CCS project in the world announced so far.
Xebec will manufacture the compression packages at its Colorado facility. They should be completed by the end of Q3 2023. The company will aim to work closely with SCS to manage cash flows and supply chain risks.
This agreement shows the rapidly expanding customer base for Xebec’s sustainable gas technologies and the company’s expanding technology portfolio for carbon capture and storage.
“Our US manufacturing capabilities and carbon capture activities are seeing increasing demand, and we are excited to be involved as a long-term partner with Summit Carbon Solutions,” said Jim Vounassis, President and CEO of Xebec.
Xebec provides compression equipment typically for renewable natural gas (“RNG”), hydrogen and industrial gasses. The company’s equipment has a wide range of applications – in landfills, dairy farms for virtual RNG transport, for hydrogen production and processing, at refueling stations, for on-site hydrogen supply and for other industrial gas deployments.
The agreement with Summit Carbon Solutions is a great opportunity for the company to expand its exposure to CO2 capture and sequestration.
Summit’ carbon capture and storage project aims to capture the emissions of 32 ethanol producers and sequester them via a 2000 miles long pipeline spanning across states like Iowa, North and South Dakota, Minnesota, and Nebraska.
The project is worth $4.5 billion and would have a capacity to store 12 million tons of CO2 per year, equivalent to removing 2.6 million vehicles from the roads annually. The agreement is a step forward toward securing its servicing capabilities to decarbonize the industry.