Summit to buy 51 CO2 compressors from Xebec

25 April 2022

A slide from an Xebec investor presentation shows multiple pathways for renewable gas.

Summit Carbon Solutions said it hopes to buy 51 carbon dioxide reciprocating compression packages for $113.5 million from Xebec Adsorption as part of a major carbon capture and sequestration project in the U.S.  A memorandum of understanding between the two companies calls the order to be completed by the end of Q3 2023.

The equipment will be used for Summit Carbon Solutions’ proposed $4.5 billion carbon capture and sequestration project, which would be the largest in the world if approved and constructed. Both companies stressed the MOU is an expression of interest and that there is no certainty that negotiations will lead to a final binding order.

The project will include CO2 capture facilities from ethanol plants and industry, associated pipelines and pump stations in Iowa, Nebraska, South Dakota, Minnesota, and North Dakota, and Class VI sequestration wells in North Dakota. The CO2 will be aggregated and transported to North Dakota via pipeline, where it will be safely and permanently sequestered in extensively researched subsurface geologic formations. The project is expected to be the largest CO2 sequestration project in the world when commissioned with a capacity to capture 12 million tons of CO2 per year, Summit said.

The compression equipment will be manufactured at Xebec Systems USA’s (formerly UECompression, or UEC) Colorado facility

The project has commitments from 31 partner ethanol facilities to deliver more than 8.0 million metric tons per annum (MMtpa) of CO2, with initial pipeline capacity of 12.0 MMtpa, and expansion capabilities to handle up to 20.0 MMtpa, Summit said. Summit Carbon Solutions was launched in early 2021, and is on track to achieve its target of being operational in the first half of 2024.

“Summit Carbon Solutions is pleased to partner with Xebec as we continue to advance our carbon capture and storage project that will open new economic opportunities for ethanol producers and maintain a strong marketplace for corn growers,” said James Powell, COO of Summit Carbon Solutions. “Xebec shares our commitment both to safety and to utilizing innovation to decarbonize critical industries like ethanol production.”

“Xebec is delighted to be involved as a key supplier to Summit Carbon Solutions’ project, which aims to make a material impact in CO2 emissions reductions in the Midwest for agriculture and industry,” said Jim Vounassis, president and CEO of Xebec Adsorption Inc. “Our U.S. 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.”

As the world seeks ways to to decarbonize, Xebec expect the need for carbon capture and sequestration solutions to accelerate, and Xebec is well positioned to provide CO2 purification, capture, liquefaction, and compression technologies, he said.

Xebec makes compressors for renewable natural gas (“RNG”), hydrogen and industrial gases through its subsidiaries Applied Compression Systems (ACS), Xebec Systems USA, and HyGear. Xebec’s compression equipment is typically needed to process sustainable gases to achieve desired operating parameters. For example, Xebec’s compression equipment has been deployed in landfills, at dairy farms for virtual RNG transport, hydrogen production and processing, refueling stations, on-site hydrogen supply and other industrial gas applications.

In March, Summit Carbon Solutions announced Continental Resources, Inc. (NYSE: CLR) would invest $250 million over the next two years to fund the project.

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