Blue Source Announces Reduction of C02 Emissions at Natural Gas Plant in Carbon Capture Project for South Central Colorado
Company to Begin Delivery of Physical C02 and Plans Sale of Offsets
Salt Lake City, Utah, October 08, 2007 -- Blue Source, LLC, the leading US portfolio of greenhouse gas emission reduction offsets and developer of carbon capture and storage projects, today announced the successful capture of vent stack CO2 flowing from a natural gas processing plant to an enhanced oil recovery site, preventing millions of cubic feet of CO2 from entering the atmosphere every day from this plant at the foothills of the Rocky mountains near La Veta, in South Central Colorado. This reduction of carbon dioxide emissions is equivalent to removing more than 70,000 cars from the road.
Prior to the start of the project, approximately 20 million cubic feet per day of CO2 was vented to the atmosphere. Now those gases will be captured from the vent-stack and travel through pipelines to be sequestered in enhanced oil recovery projects.
In addition, Blue Source said it has an agreement to sell all of the anthropogenic CO2 and market the related greenhouse gas Verified Emission Reductions (VERs) that will be produced from the project and which are necessary for the payout of the investment.
“This project prevents a significant amount of CO2 from venting into the atmosphere and will further help produce a considerable amount of domestic oil in underused oil fields,” said Russell Martin, EVP of Blue Source. “This project demonstrates that it is indeed possible to reduce CO2 in the environment and create transferable, economic benefits in the form of VERs that will go far in supporting the investment in this project.” No additional crude oil is produced as a result of CO2 injection from this project. The crude oil would have been produced anyway from the injection of CO2 sourced from underground CO2 reserves in southern Colorado.
The Blue Lake CO2 Pipeline project began construction in 2005 and is now creating 400,000 tonnes of CO2 emission reductions each year through carbon capture and storage (CCS). It is expected that this captured volume will rise to over 500,000 tonnes per year.
The Apple Tree natural gas processing plant in Huerfano County, Colorado, required a capital investment of approximately $8 million to connect the vent stack carbon dioxide source into a CO2 transportation pipeline. Rather than venting into the atmosphere, the CO2 will now travel 16 miles to join the Sheep Mountain CO2 Pipeline, where it will be used in enhanced oil recovery in the Permian Basin.
About Blue Source, LLC
Blue Source is the leader in North American–vintage GHG offsets, and works with businesses to identify, create, acquire and market in a portfolio the GHG emission reduction benefits. Blue Source sells GHG offsets to retail and wholesale buyers and to financial markets leading in the development of new products that manage emissions. Blue Source has secured under long-term sourcing agreements hundreds of millions of tons of GHG emission reduction offsets through the year 2022. Additionally, Blue Source and its management team are leaders in the development of CCS projects in North America having developed, owned or operated five such systems in the last 20 years. Blue Source today has offices in Salt Lake City, Utah; Houston; Denver; Raleigh, North Carolina; San Francisco and New York.
About Apple Tree, LLC
Manzano, LLC of Roswell, New Mexico, through its management of Apple Tree Holdings, LLC, began development of the 11,000-acre natural gas and carbon dioxide field in 2003. The gas produced at the facility is approximately 22% methane (natural gas) and 78% CO2. Manzano and its investors developed CO2 separation plant to produce and sell natural gas (methane) as well as the anthropogenic CO2 which can be delivered to EOR projects within the Permian Basin.
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