Project description

The Petroleum Recovery Research Center (PRRC), a subdivision of the New-Mexico Institute of Mining and Technology (NMT) is working closely midstream company Targa Northern Developer. The company operates acid gas treating and disposal facilities in several locations in southeastern New Mexico. Located in the Permian Basin, one of the most prolific oil and gas basins in the US, Targa Northern Developer’s Red Hills facility separates, compresses, and injects H2S and CO2 from the raw sour gas it receives into the facility. The facility was already injecting this acid gas, which has high percentage of CO2, and sought to develop an MRV plan to submit to the US EPA and access 45Q tax credits. Additionally, roughly 50% of Targa’s CO2 emissions are from vented CO2 resulting from the amine treating process used at the facility [5]. Capturing, sequestering and storage of previously-vented CO2 is another economic option to capture 45Q tax credits and lower the company’s carbon footprint.

NMT and the CUSP’s work has enabled our industry partner to complete needed permitting work for conversion of existing or future acid gas injection (AGI) wells to EPA Class VI wells and, subsequently, apply for 45Q credits. Specifically, the CUSP partnership has brought the following:

• Proven knowledge of EPA Subpart RR and IRS’ 45Q regulations

• Formation modeling expertise

• Monitoring, Reporting and Verification (MRV) plan development expertise

• Top-level relations with regulatory representatives