NextDecade Withdraws Carbon Capture and Storage Application at FERC

Rhea-AI Summary

NextDecade (NASDAQ: NEXT) has announced the withdrawal of its application for a carbon capture and storage (CCS) project at the Rio Grande LNG facility from the Federal Energy Regulatory Commission (FERC). The company's CEO, Matt Schatzman, stated that the CCS project is not sufficiently developed for FERC review at this time. Despite this setback, NextDecade remains committed to advancing and reducing the cost of CCS technology to help companies lower their facility emissions and achieve clean energy goals.

Positive

• Commitment to advancing and lowering the cost of carbon capture and storage technology
• Focus on helping companies reduce emissions and achieve clean energy goals

Negative

• Withdrawal of the carbon capture and storage application at FERC
• CCS project at Rio Grande LNG facility not sufficiently developed for regulatory review

Insights

Energy Industry Analyst

NextDecade's withdrawal of its CCS application at FERC is a significant setback for the company's environmental strategy. This move suggests potential technical or economic challenges in implementing CCS at the Rio Grande LNG facility. The decision could impact NextDecade's competitive position in the increasingly environmentally conscious LNG market.

Investors should note that this withdrawal might delay the project timeline and potentially increase costs. However, the CEO's statement reaffirming commitment to CCS indicates that this is likely a temporary pause rather than a complete abandonment of the strategy. The company's ability to adapt and refine its CCS approach will be important for its long-term success and attractiveness to ESG-focused investors.

Environmental Policy Expert

The withdrawal of NextDecade's CCS application highlights the ongoing challenges in implementing large-scale carbon capture technologies in the LNG industry. This move could potentially weaken the company's environmental credentials in the short term, especially as global pressure mounts for cleaner energy solutions.

However, the company's stated commitment to advancing CCS technology suggests a strategic recalibration rather than abandonment. This pause could allow NextDecade to refine its approach and potentially develop more cost-effective or efficient CCS solutions. The success of this strategy will depend on the company's ability to innovate and align with evolving regulatory and market expectations for low-carbon LNG production.

HOUSTON--(BUSINESS WIRE)-- NextDecade Corporation (NextDecade or the Company) (NASDAQ: NEXT) announced today that its subsidiary Rio Grande LNG, LLC withdrew its application at the Federal Energy Regulatory Commission (FERC) for the proposed carbon capture and storage (CCS) project at the Rio Grande LNG facility and requested that the FERC terminate the CCS proceeding.

“We appreciate the FERC’s diligence during the review process,” said NextDecade Chairman and CEO Matt Schatzman. “The CCS project at RGLNG 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.”

About NextDecade Corporation

NextDecade Corporation is an energy company accelerating the path to a net-zero future. Leading innovation in more sustainable LNG and carbon capture solutions, NextDecade is committed to providing the world access to cleaner energy. Through our subsidiaries Rio Grande LNG and NEXT Carbon Solutions, we are developing a 27 MTPA LNG export facility in South Texas and have proposed a carbon capture and storage project at the site. We are also working with third-party customers to deploy our proprietary processes to lower the cost of carbon capture and storage and reduce CO₂ emissions at their industrial-scale facilities. NextDecade’s common stock is listed on the Nasdaq Stock Market under the symbol “NEXT.” NextDecade is headquartered in Houston, Texas. For more information, please visit www.next-decade.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words “anticipate,” “contemplate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “might,” “will,” “would,” “could,” “should,” “can have,” “likely,” “continue,” “design,” “assume,” “budget,” “guidance,” “forecast,” and "target," and other words and terms of similar expressions are intended to identify forward-looking statements, and these statements may relate to the business of NextDecade and its subsidiaries. These statements have been based on assumptions and analysis made by NextDecade in light of current expectations, perceptions of historical trends, current conditions and projections about future events and trends and involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. Although NextDecade believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that the expectations will prove to be correct. NextDecade’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in NextDecade’s periodic reports that are filed with and available from the Securities and Exchange Commission. Additionally, any development of subsequent trains at the Rio Grande LNG Facility or CCS projects remains contingent upon maintaining requisite government approvals, execution of definitive commercial and financing agreements, securing all financing commitments and potential tax incentives, achieving other customary conditions and making a final investment decision to proceed. The forward-looking statements in this press release speak as of the date of this release. NextDecade may from time to time voluntarily update its prior forward-looking statements, however, it disclaims any commitment to do so except as required by securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240820040707/en/

Investors

Megan Light

mlight@next-decade.com

832-981-6583



Media

Susan Richardson

srichardson@next-decade.com

832-413-6400

Source: NextDecade Corporation

FAQ

Why did NextDecade withdraw its carbon capture and storage application from FERC?

NextDecade withdrew its CCS application because the project at the Rio Grande LNG facility is not sufficiently developed to allow FERC review to continue at this time.

What is NextDecade's stance on carbon capture and storage technology after withdrawing the FERC application?

Despite withdrawing the application, NextDecade remains committed to advancing and lowering the cost of carbon capture and storage technology to help companies reduce emissions and achieve clean energy goals.

How might the withdrawal of the CCS application affect NextDecade's (NEXT) stock?

The withdrawal could potentially impact investor confidence in NextDecade's (NEXT) environmental initiatives, but the company's continued commitment to CCS technology may mitigate negative effects on the stock.

What is the Rio Grande LNG facility and how does it relate to NextDecade's CCS project?

The Rio Grande LNG facility is a project by NextDecade where the company planned to implement a carbon capture and storage system to reduce emissions from LNG production.