DECD0000046

The recipient intends to construct and operate a post-combustion carbon capture system at the Baytown Energy Center (“BEC”), the “Project''. BEC is nominally an 800-MW base-load combined cycle gas-fired turbine power plant (“CCGT”).

The project is expected to capture and sequester approximately 2 million metric tons of CO2 each year with Shell Catalysts & Technologies’ (“SCT’s”) Cansolv amine-based absorbent, which is tailored for CCGT flue gas. An experienced and reliable transportation and sequestration vendor will permanently sequester the captured CO2.

The project will include engagement with local and state stakeholders, and it promises to create quality jobs and open new opportunities to strengthen community programming and deliver benefits to disadvantaged communities, in furtherance of Justice40 Initiative goals. The project, and the terms of this cooperative agreement, effectuate the program goals and priorities of the Department of Energy (“DOE”) for the development of transformational domestic, commercial-scale, integrated carbon capture and storage, demonstration projects designed to further the development, deployment, and commercialization of technologies to capture, transport, and store CO2 emissions from an existing natural gas electric generation facility, as expressed by Congress in the Energy Policy Act of 2005 (42 U.S.C. § 16292(B)(2)(C)) and as authorized and directed by Section 41004(B) of the Infrastructure Investment and Jobs Act.

Calpine Texas Ccus Holdings

1. MEET OBJECTIVES AND DELIVERABLES IDENTIFIED IN THE DOE OFFICE OF CLEAN ENERGY DEMONSTRATIONS' (“OCED’S”) PHASED APPROACH: A DETAILED PROJECT MANAGEMENT PLAN (“PMP”) WILL BE UTILIZED TO DEFINE SCOPE AND APPROACH FOR PHASE 1 DELIVERABLES. PHASES 2-4 WILL BE DEFINED AT A HIGHER LEVEL AND DETAILED OVER COMPLETION OF PRIOR PHASE OBJECTIVES OVER THE LIFE OF THE AWARD. OCED PHASE DESCRIPTIONS PHASE 1 – DETAILED PROJECT PLANNING PHASE 2 – PROJECT DEVELOPMENT, PERMITTING, AND FINANCING PHASE 3 – INSTALLATION, INTEGRATION, AND CONSTRUCTION PHASE 4 – RAMP-UP SUSTAINED OPERATIONS AND TRANSITION TO COMMERCIAL USE AND/OR CLOSEOUT 2. FULL SCALE DEMONSTRATION: THE PROJECT’S OBJECTIVE IS TO ABATE UP TO 6 MILLION METRIC TONS OF CO2 PER YEAR OVER THE THREE-YEAR OPERATIONS PERIOD, WITH A DESIGNED CAPTURE EFFICIENCY RATE OF 90-95% FOR FULL DEMONSTRATION ON CCGT. 2. THE PROJECT WILL DEMONSTRATE DECARBONIZATION OF BOTH POWER PRODUCTION AND STEAM PRODUCED FOR USE IN COLLOCATED INDUSTRIAL CUSTOMER OPERATIONS. IN ADDITION, THE PROJECT WILL VALIDATE MARKET VIABILITY THROUGH EXECUTION OF POWER PURCHASE AGREEMENT(S) REFLECTING COMPETITIVE PRICING OF LOW-CARBON ENERGY GENERATION AND LOW-CARBON STEAM. 3. TECHNICAL READINESS DEMONSTRATION OF CARBON CAPTURE TECHNOLOGY: THE PROJECT UTILIZES SCT’S CANSOLV ON CCGT. THE PROJECT WILL DEMONSTRATE THAT SCT’S CANSOLV TECHNOLOGY AND DC-103 SOLVENT ARE VIABLE TO MEET PROCESS PERFORMANCE, EMISSIONS REDUCTION, AND COSTS. A COMPLETED CARBON CAPTURE FRONT-END-ENGINEERING-DESIGN (“FEED”) WILL BE COMPLETED AND INTEGRATED INTO AN OVERALL FEED FOR CAPTURE, TRANSPORT, AND STORAGE. THIS FEED EFFORT WILL BE USED TO VALIDATE TECHNICAL CLAIMS AND TO CONDUCT AN AACE CLASS 2 ESTIMATE FOR PHASE 1. 4. TECHNICAL READINESS DEMONSTRATION OF CARBON OXIDE PIPELINE AND STORAGE: THE PROJECT TEAM IS CURRENTLY UNDER NEGOTIATIONS WITH MULTIPLE TRANSPORT AND STORAGE (“T&S”) VENDORS. WITHIN 90 DAYS OF THE FEDERAL AWARD, THE PROJECT TEAM WILL SELECT A T&S PARTNER AND UPDATE THE PROJECT SCOPE, SCHEDULE, AND BUDGET WITH RELEVANT INFORMATION. IN ADDITION, IN ADDITION TO ADDRESSING NEPA REQUIREMENTS. A COMPLETED T&S FEED WILL BE COMPLETED AND INTEGRATED INTO AN OVERALL FEED FOR CAPTURE, TRANSPORT, AND STORAGE. THIS FEED EFFORT WILL BE USED TO VALIDATE TECHNICAL CLAIMS AND TO CONDUCT RELEVANT COST ANALYSIS FOR PHASE 1. 5. MEANINGFUL ENGAGEMENT WITH COMMUNITY: THE PROJECT WILL IMPLEMENT A COMMUNITY BENEFITS PLAN (“CBP”) TO MEANINGFULLY ENGAGE AS DEFINED IN THE PMP, INCLUDING IMPLEMENTATION OF “SMART MILESTONES;” COMMUNITY AND LABOR ENGAGEMENT; INVESTING IN THE AMERICAN WORKFORCE; ADVANCING DIVERSITY, EQUITY, INCLUSION, AND ACCESSIBILITY; AND CONTRIBUTING TO THE JUSTICE40 INITIATIVE. THE CBP ALSO DESCRIBES THE PROJECT’S PLAN FOR THE CREATION AND RETENTION OF HIGH-PAYING, QUALITY JOBS AND DEVELOPMENT OF A SKILLED WORKFORCE INCLUDING EXPLANATION OF HOW POTENTIAL WORKFORCE NEEDS AND IMPACTS WERE DETERMINED.

81.255 - Clean Energy Demonstrations

Department of Energy (DOE)

Multi-State United States

Multi-State

Bipartisan Infrastructure Law Carbon Capture Demonstration Projects Program Funding Opportunity Announcement (DE-FOA-0002962)

Amendment Since initial award the End Date has been extended from 12/31/31 to 12/31/32.