Blue Source, LLC and Coffeyville Resources Nitrogen Fertilizers, LLC announce plan to develop a Kansas greenhouse gas emission reduction project
Project calls for transportation and sequestration of carbon dioxide
Salt Lake City, Utah, August 21, 2007 – Blue Source, LLC, the leading U.S. aggregator of greenhouse gas (GHG) emission reduction offsets and the leading US developer of anthropogenic (man-made) carbon capture and storage (CCS) projects, today announced that it has signed an exclusive agreement with Coffeyville Resources Nitrogen Fertilizers, LLC, under which Blue Source will work to develop CCS options for the carbon dioxide (CO2) produced at Coffeyville Resources’ petroleum coke gasification-based ammonia and urea ammonium nitrate production facility located in Coffeyville, Kan.
Blue Source will work to develop options to sequester Coffeyville Resources’ produced CO2, with particular focus on securing a market for the CO2 within the enhanced oil recovery (EOR) industry. Coffeyville Resources produces a high purity CO2 in quantities that are of strong interest to the EOR market. When sequestered, this highly reliable source of anthropogenic CO2 will reduce GHG emissions by more than 650,000 tonnes per year and will enhance the nation’s domestic oil supply.
Blue Source or its management team have designed, constructed, owned and or operated in one form or another all of the anthropogenic CO2 pipelines for EOR use developed in North America in the last 20 years.
“By using CO2 to recover additional oil reserves, EOR represents the highest value generating market for anthropogenic CO2 during the near term,” said Bill Townsend, CEO and co-founder of Blue Source. “EOR will lead the way in the build-out of the carbon highway that is required for the CCS market to develop.”
Townsend also said that Coffeyville Resources’ is providing leadership through its commitment to environmental stewardship by reducing greenhouse gases and by doing its part to improve domestic oil supply.
“Coffeyville Resources continues to demonstrate market leadership in this arrangement with Blue Source. The foresight to take a carbon stream of this nature and to monetize the carbon emission reductions while improving the development of US-based natural resources and energy security is a clear leadership signal,” said Townsend.
Blue Source would market the GHG offsets created through the project to capture, deliver, and sequester the CO2 either in an EOR project or other forms of geologic sequestration.
About Blue Source, LLC
Blue Source is the leader in North American–vintage GHG offsets, and works with businesses to identify, create, acquire, aggregate and market GHG emission reduction benefits. After aggregation, Blue Source sells GHG offsets to retail and wholesale buyers and to financial markets leading in the development of new products that manage emissions. Blue Source has aggregated and secured under long-term sourcing agreements more than 300 million tons of GHG emission reduction offsets through the year 2022. Additionally, Blue Source and its management team are leaders in the development of CCS projects in North America having developed, owned or operated five such systems in the last 20 years. Blue Source today has offices in Salt Lake City, Houston, Denver, Raleigh, San Francisco and New York. www.ghgworks.com.
About Coffeyville Resources, LLC
Coffeyville Resources, LLC is an independent refiner and marketer of high value transportation fuels and a producer of ammonia and urea ammonia nitrate, or UAN, fertilizers. Coffeyville Resources is one of only seven petroleum refiners and marketers in the Coffeyville supply area (Kansas, Oklahoma, Missouri, Nebraska and Iowa) and, at current natural gas prices, the lowest cost producer and marketer of ammonia and UAN in North America. Coffeyville Resources’ group of companies includes Coffeyville Resources Refining & Marketing LLC, a 108,000 BPD oil refinery in Coffeyville, Kansas; Coffeyville Resources Crude Transportation, LLC, a crude oil gathering system serving central Kansas and northern Oklahoma; Coffeyville Resources Terminal, LLC, a refined products terminal in Phillipsburg, Kansas; Coffeyville Resources Pipeline, LLC; and Coffeyville Resources Nitrogen Fertilizers, LLC, which operates a unique coke gasification-based nitrogen fertilizer plant adjacent to the refinery that annually produces over 700,000 tons of nitrogen fertilizer products. For more information, please visit www.coffeyvillegroup.com.
Media contact:
Joe McGurk
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