Three large carbon sequestration projects

October 10, 2007 by Walter Schneider.

BiopactU.S. DOE to invest $197 million in three large carbon sequestration projects

The U.S. Department of Energy (DOE) announces that it has awarded the first three large-scale carbon sequestration projects in the United States and the largest single set in the world to date. The three projects - Plains Carbon Dioxide Reduction Partnership; Southeast Regional Carbon Sequestration Partnership; and Southwest Regional Partnership for Carbon Sequestration - will conduct large volume tests for the storage of one million or more tons of carbon dioxide (CO2) in deep saline reservoirs….(Full Story)

One of those carbon (and hydrogen-sulphide) sequestration projects involves the provinces of Alberta, Saskatchewan and Manitoba.  Specifically in relation to Alberta,

A second test will be conducted in northwestern Alberta, Canada, and will demonstrate the co-sequestration of CO2 and hydrogen sulfide from a large gas-processing plant into a deep saline formation. This will provide data about how hydrogen sulfide affects the sequestration process. The Plains partnership includes North Dakota, South Dakota, Minnesota, Montana, Wyoming, Nebraska, Iowa, Missouri, and Wisconsin, along with the Canadian provinces of Alberta, Saskatchewan, and Manitoba….(Full Story)

Given that the plant-gate price per long ton of waste sulphur in Alberta saw a steady decline from a high of $56.24 in May 2003 down to $0.00 in July 2007, it is very curious that HAZCO intends to establish a sulphur-forming and -processing facility to the east of Bruderheim, especially given the fact of HAZCO’s statements to the extent that one of the previously faltered proposals for such a facility in Thorhild County was allegedly canned by HAZCO because at that time there was a similar slump in waste-sulphur prices.

Due to the low prices for Alberta waste-sulphur that will now most likely prevail for many years to come, it would appear that HAZCO’s proposal for sulphur forming and processing in Lamont County is now even less likely to ever be economical in relation to the Canadian economy than it was when the Thorhild proposal got scrapped.

However, sulphur-processors, -shippers and -handlers still get paid as long as they manage to  inject sulphur into the glutted word market, regardless of  what the world market price for sulphur happens to be, as long as  Canada wants to get rid of its waste-sulphur, and as long as the taxpayers and end-consumers of oil and gas are willing to pay the price.

It appears that the only viable process for HAZCO (but of course only through subsidization by end consumers of oil-refinery products) is the long-term storing of waste-sulphur in Lamont County.  HAZCO vehemently insists it has no interest in pursuing that option.

See also Sulphur glut poses storage nightmare.

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