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Texas Clean Energy Project (TCEP) Fact Sheet: Carbon Dioxide Capture and Storage Project

Company/Alliance: Summit Power Group Inc, Siemens, Fluor, Linde, R.W. Beck, Blue Source and Texas Bureau of Economic Geology

Location: Penwell, Ector County, Texas, USA

Feedstock: Coal

Size: 400 MW Gross, 245 MW Commercial output ( 2 Mt/yr captured) New Build

Capture Technology: Pre-Combustion: Siemens IGCC technology and Linde Rectisol acid-gas capture technology (90% CO2 capture)

CO2 Fate: EOR in the Permian Basin

Start: Start (2019)


Total project cost is estimated to be $1.727 billion. The DOE share is $450 million (26%). TCEP is also receiving $637 million in investment tax credits from DOE and Treasury Department specially designed to stimulate clean coal electricity projects on competition of the project.

TCEP is the recipient of $811MM in investment tax credits under section 48A of the Internal Revenue Code. This has been awarded to qualifying advanced coal projects that generate at least 400MW of power and capture a minimum of 65 percent of their CO2.

The DOE awarded $350 million in December 2009 for an 8 year joint project with University of Texas Bureau of Economic Geology. TCEP also received an additional $100 million from the American Recovery and Reinvestment Act (ARRA) in August 2010. TCEP received the $450 million award in 2010 from the DOE’s Clean Coal Power Initiative (CCPI). All government funding is through the ARRA.

On September 27, 2011, the DOE issued a Record of Decision that - along with a signed cooperative agreement - will allow federal funding to be used to help build TCEP.


December 2015: Summit signed the engineering, procurement and construction (EPC) contract with China Huanqiu Contracting & Engineering Corp. (HQC) and SNC-Lavalin. The contract covers engineering, procurement, construction, commissioning, and performance testing of the chemical and carbon capture block for the project, which will be integrated with a Siemens combined cycle power block.

On June 20, 2011, TCEP entered into a 25-year power purchase agreement with CPS Energy of San Antonio, Texas, to buy 200 MW of power from the TCEP Project. Summit and Blue Strategies LLC announced that Whiting Petroleum Corporation had signed a 15-year contract for the purchase of CO2. Whiting will be the largest customer purchasing 60 percent of the CO2 for the next 15 years. Summit has also secured a long-term contract for an unnamed company to purchase the 750,000 tons urea or fertilizer the plant will be capable of producing annually. TCEP will also be producing 930k tons/year of urea for fertilizer.

The TCEP Project is to be located at one of the former FutureGen finalist sites – the 600-acre Penwell site – situated fifteen miles west of Odessa, Texas.  The project will sell the estimated 3 million tons captured annually for EOR in the surrounding Permian Basin. In addition to the CO2 the project will also produce other valuable commercial products, including urea (for fertilizer), argon gas, sulfuric acid, and an inert non-leachable slag suited to cement making, road building, and roofing materials. There are nearby natural gas pipelines for start-up, backup and maintenance fuel.

The IGCC facility will deploy Siemens commercial gasification and power block technologies, including Siemens combustion and steam turbine-generator sets. The facility will use water-gas shift and Rectisol® CO2 scrubber technology to capture about 90% of the CO2 produced from the 400 MW (gross) facility. In addition to the CO2, TCEP will capture 99% of sulfur dioxide, 90% of nitrogen oxide, and 99% of mercury.

Texas Legislature in 2009 enacted H.B. 469 to help incentivize TCEP and similar projects. TCEP and other projects with 70% or greater CO2 capture can qualify for more than $100 million in Texas tax relief, and oil produced using CO2 from TCEP and other projects enjoys additional tax advantages. TCEP received its final air quality permit from the Texas Commission on Environmental Quality on December 28, 2010.

Project Link: Texas Clean Energy Project

Other Sources and Press Releases:

Summit Power's website

Date Modified March 1, 2016

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