Crescent Midstream Selected to Develop an Integrated Carbon Capture Solution for Entergy Natural Gas Power Plant

Rhea-AI Summary

Crescent Midstream has been chosen to develop an integrated carbon capture and sequestration (CCS) project for Entergy 's 994 MW Lake Charles Power Station in Westlake, Louisiana. The project, valued at approximately $1 billion, aims to capture and transport 3 million metric tonnes of CO2 per year, equivalent to the annual emissions of 600,000 motor vehicles. This collaboration involves SAMSUNG E&A and utilizes Honeywell's carbon capture technologies.

The project is set to be one of the largest CCS initiatives in the United States, targeting the Louisiana Gulf Coast, the second-largest CO2-emitting state. Crescent Midstream will leverage its extensive pipeline experience to safely transport CO2 from emitters to permanent underground storage facilities. This aligns with Crescent's commitment to corporate sustainability, which includes sponsoring efforts to plug orphaned oil wells and preserve marshlands in Louisiana.

Positive

• Project aims to capture 3 million metric tonnes of CO2 annually, equivalent to emissions from 600,000 vehicles
• Collaboration with major industry players: Entergy , SAMSUNG E&A, and Honeywell
• Potential to significantly reduce greenhouse gas emissions in one of the highest emitting regions in the US
• Aligns with Crescent Midstream's corporate sustainability initiatives

Negative

• High project cost of approximately $1 billion
• Potential risks associated with large-scale carbon capture and sequestration implementation

Insights

Energy Industry Analyst

This project marks a significant milestone in the energy industry's efforts to reduce carbon emissions. The scale of the project, capable of capturing 3 million metric tonnes of CO2 annually, is unprecedented for a single power plant in the U.S. This could potentially set a new industry standard for large-scale CCS implementation.

The collaboration between Entergy, Crescent, SAMSUNG E&A and Honeywell demonstrates a multi-faceted approach to tackling emissions, combining expertise in power generation, midstream operations, engineering and carbon capture technology. This integrated solution could serve as a model for future projects in high-emission regions.

The $1 billion investment signals a strong commitment to sustainable energy practices, which could positively impact Entergy's long-term financial outlook and environmental, social and governance (ESG) profile.

Environmental Policy Expert

This project aligns with the growing focus on decarbonization in the energy sector. Louisiana's position as the second-largest CO2-emitting state makes this initiative particularly impactful. The project's potential to capture emissions equivalent to 600,000 motor vehicles annually is a significant step towards meeting climate goals.

However, it's important to note that while CCS technology is promising, it's not a silver bullet for climate change. Critics argue that it could prolong reliance on fossil fuels. The project's success and environmental impact will depend on factors such as capture efficiency, transportation safety and long-term storage stability.

Crescent's additional initiatives, like plugging orphaned oil wells and marsh preservation, demonstrate a holistic approach to environmental stewardship. This multi-pronged strategy could serve as a blueprint for other companies in high-emission industries.

Financial Analyst

The $1 billion investment in this CCS project represents a significant capital commitment. While the immediate financial returns may not be apparent, the long-term benefits could be substantial. As carbon pricing and emissions regulations become more stringent, early adopters of large-scale CCS technology may gain a competitive advantage.

Entergy's involvement in this project could potentially enhance its market valuation, particularly among ESG-focused investors. The company's proactive approach to emissions reduction might lead to improved risk ratings and potentially lower cost of capital in the future.

For Crescent Midstream, backed by The Carlyle Group, this project represents a strategic diversification into the growing carbon management market. It positions the company at the forefront of a potentially lucrative sector, which could drive future growth and profitability.

• Crescent will lead the development of the carbon capture and sequestration ("CCS") project for Entergy Corporation's (NYSE: ETR) 994 MW Lake Charles Power Station in Westlake, Louisiana
  
  
• The completed project would be one of the country's largest CCS projects, capturing annual commercial carbon dioxide ("CO2") emissions equivalent to 600,000 motor vehicles
  
  
• The project, which is being done in partnership with SAMSUNG E&A and will use Honeywell capture technology, seeks to construct a carbon capture facility and pipeline capable of capturing and transporting 3 million metric tonnes of CO2 per year

GRAY, La. and HOUSTON, Sept. 20, 2024 /PRNewswire/ -- Crescent Midstream will develop and construct an integrated CCS project in Lake Charles, Louisiana capable of capturing, transporting, and permanently storing CO2 emitted from an Entergy-owned natural gas-fired power plant. Through collaboration between Entergy, Crescent, SAMSUNG E&A, and Honeywell's carbon capture technologies, the ~$1 billion project would be one of the largest CCS projects in the United States. It is expected to capture up to three million tonnes of CO2 per year that would otherwise be emitted on the Louisiana Gulf Coast. 

Louisiana is the second largest CO2-emitting state in the United States. The majority of those emissions are concentrated in the lower Mississippi River Industrial Corridor, which produces more than 72 million tonnes of CO2 emissions per year according to the EPA. Roughly 66% of the state's CO2 emissions come from industrial sources and 13% come from electric power generation.

As part of the project, Crescent would apply its extensive onshore and offshore pipeline construction and operations experience to facilitate the safe transportation of CO2 from emitters to permanent underground storage facilities.

Jerry Ashcroft, CEO of Crescent Midstream, said, "Corporate sustainability is a core value at Crescent Midstream. We are proud to apply our extensive midstream expertise to create the vital connection between carbon dioxide emission sources and permanent underground storage. Large-scale carbon capture and sequestration has enormous potential to reduce greenhouse gas emissions, and we look forward to helping demonstrate that in one of the highest emitting regions in the United States."

This project builds on Crescent's ongoing commitment to corporate sustainability. To help reduce emissions, the firm recently agreed to sponsor efforts by the Well Done Foundation (WDF) to plug orphaned oil wells in Louisiana. The foundation's proven methodology delivers immediate and quantifiable benefits by stopping oil wells from discharging methane emissions, a gas that is more than 25 times as potent as carbon dioxide at trapping heat in the atmosphere. Additionally, Crescent has completed marsh preservation projects that mitigate coastal erosion in areas that have been impacted by inclement weather events to both protect and rebuild those areas and to restore CO₂ absorbing plant life. In addition, Crescent is actively involved in community outreach in Southern Louisiana and supports numerous organizations that drive a positive social impact within its operating footprint.

Crescent Midstream is backed by The Carlyle Group, a leading global alternative investment firm with $435 billion of assets under management as of June 30, 2024.

About Crescent Midstream
Crescent Midstream is an independent energy company that provides safe, reliable crude oil services in the Gulf of Mexico and Louisiana. Led by CEO Jerry Ashcroft, Crescent is managed by a seasoned team of midstream experts with significant expertise and a proven track record of operating and optimizing midstream assets. Our unique asset footprint strongly positions Crescent for organic growth. The Crescent system serves more than 80 deep-water platforms. Our offshore and onshore pipelines connect shippers to liquid trading and receipt points across Louisiana. For more information, visit
https://www.crescentmidstream.com/

Media Contact 
Suni Hardy
shardy@crescentmid.com

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SOURCE Crescent Midstream

FAQ

What is the capacity of the Entergy natural gas power plant involved in the CCS project?

The Entergy natural gas power plant involved in the CCS project is the 994 MW Lake Charles Power Station in Westlake, Louisiana.

How much CO2 is the Crescent Midstream CCS project expected to capture annually?

The Crescent Midstream CCS project is expected to capture up to 3 million metric tonnes of CO2 per year.

Which companies are collaborating on this CCS project with Entergy (NYSE: ETR)?

The CCS project is a collaboration between Entergy (NYSE: ETR), Crescent Midstream, SAMSUNG E&A, and Honeywell.

What is the estimated cost of the CCS project for Entergy's Lake Charles Power Station?

The CCS project for Entergy's Lake Charles Power Station is estimated to cost approximately $1 billion.