HOUSTON – (COMMERCIAL THREAD) – NextDecade Corporation (NextDecade or the Company) (NASDAQ: NEXT) announced the formation of NEXT Carbon Solutions, LLC (NEXT Carbon Solutions), a wholly owned subsidiary of NextDecade which is expected to:
develop one of the largest carbon capture and storage (CCS) projects in North America at NextDecade’s Rio Grande LNG project;
advance proprietary processes to reduce the cost of using CCS technology;
help other energy companies reduce their greenhouse gas (GHG) emissions associated with the production, transportation and use of natural gas; and
generate high quality and verifiable carbon offsets to support companies in their efforts to achieve net zero emissions.
NEXT Carbon Solutions CCS Project Expected to Reduce Permitted CO Emissions2 more than 90% of Rio Grande LNG emissions without major changes to the design of the Rio Grande LNG project. As a result, Rio Grande LNG is expected to be the greenest LNG project in the world.
“Efforts to reduce global greenhouse gas emissions are the foundation of our business, ”said Matt Schatzman, President and CEO of NextDecade. “The launch of NEXT Carbon Solutions comes at a pivotal time for our country and the world, and we look forward to demonstrating the transformative and impactful contributions this company will make to the global energy industry and the search for a future. net zero.
The CCS project of NEXT Carbon Solutions at Rio Grande LNG is expected to enable the capture and permanent geological storage of more than five million tonnes of CO2 per year. NEXT Carbon Solutions estimates that the development of the CCS project at the same time as the Rio Grande LNG project will result in investment costs 60-80% lower than the modernization of an operating LNG facility.
The all-inclusive costs of the CCS project, including capital and operating expenses, interest, transportation and permanent storage, are expected to be between $ 63 and $ 74 per metric tonne of CO.2 before any benefit from the tax credits of article 45Q. Including the full benefit of Section 45Q tax credits, the breakeven cost of adding CCS to Rio Grande LNG is expected to be $ 13 to $ 24 per metric tonne of CO.2 or $ 0.05 to $ 0.09 per MMBtu on an LNG basis. Coupled with its low costs, NextDecade believes that Rio Grande LNG’s LNG will be among the most environmentally friendly and attractive in the world.
“I am extremely proud of the carbon reduction work our NextDecade team has done over the past few years, and the team’s ability to innovate and continually challenge industry paradigms, ”said Ivan Van der Walt, Senior Vice President, Engineering and Construction at NextDecade. “We believe that our CCS project at Rio Grande LNG and the proprietary processes we are advancing could significantly improve the environmental performance and positive impacts of low-GHG LNG.
The greenest LNG project in the world
NextDecade works with sustainable Permian and Eagle Ford producers looking to supply Responsible Origin Natural Gas (RSG) to Rio Grande LNG. Combine RSG with the expected CO2 The reduction in emissions associated with our CCS project is expected to enable Rio Grande LNG to produce the lowest lifecycle of GHG LNG on an FOB basis and to be the greenest LNG project in the world.
“We continue to believe that reliable and competitively priced LNG and responsible stewardship of the environment are not mutually exclusive, and our customers do not have to choose between the wallet and the planet, ”said Schatzman. “NextDecade will be a leader in the sustainable production of LNG to export from the US Gulf of Mexico coast, providing clean energy security to global markets, particularly those that have historically relied on coal and other carbon-intensive fuels to produce electricity and heat from industrial processes. ”
To realize the significant benefits associated with the co-development of Rio Grande LNG and the CCS project, NextDecade plans to achieve the FID on a minimum of two trains at Rio Grande LNG in 2021 and the FID on the CCS project shortly after the FID at Rio Grande LNG.
Conference call and webcast for investors
NextDecade will host a conference call and webcast at 3:30 p.m. CST to discuss the details of today’s announcement. NextDecade attendees will include Matt Schatzman, President and CEO; Brent Wahl, Chief Financial Officer; Ivan Van der Walt, Senior Vice President, Engineering and Construction; and Patrick Hughes, Senior Vice-President, Strategy and Business Development.
About NextDecade Corporation
NextDecade Corporation (NextDecade) is committed to providing the world with access to cleaner energy. NextDecade, through its wholly owned subsidiaries Rio Grande LNG and NEXT Carbon Solutions, is developing a 27 mtpa LNG export project in South Texas, as well as one of the largest capture and capture projects. carbon storage in North America. The Rio Grande LNG project is expected to be the largest and greenest US LNG export solution connecting natural gas from the Permian Basin and the Eagle Ford Shale to the global LNG market. NextDecade common stock is listed on the Nasdaq under the symbol “NEXT”. NextDecade is headquartered in Houston, Texas. For more information visit www.next-decade.com.
Forward-looking information for the next decade
This press release contains forward-looking statements within the meaning of US federal securities laws. The words “anticipate”, “contemplate”, “estimate”, “expect”, “plan”, “plan”, “intend”, “believe”, “may”, “could”, ” are going “,” want “,” could “,” should “,” may have “,” probably “,” continue “,” design “and other words and terms with similar expressions are intended to identify forward-looking statements, and such statements may relate to the business of NextDecade and its subsidiaries. These statements are based on NextDecade’s current assumptions, expectations and projections regarding future events and trends and involve a number of known and unknown risks, which may cause actual results to differ materially from the expectations expressed or implied in them. forward-looking statements. These risks include uncertainties regarding the progress in the development of NextDecade’s LNG liquefaction and export projects and the timing of such progress; NextDecade’s (“FID”) final investment decision in the construction and operation of an LNG terminal at the Port of Brownsville in South Texas (the “Terminal”) and the timing of such decision; the successful completion of the terminal by third party contractors and an approximately 137 mile pipeline to supply gas to the terminal under development by a third party; the ability of NextDecade to secure additional debt and equity financing in the future to complete the terminal; the accuracy of the estimated costs for the Terminal; statements that the Terminal, when completed, will have certain characteristics, including quantities of liquefaction capacity; development risks, operational hazards, regulatory approvals applicable to third party terminal and pipeline construction and operation activities; NextDecade’s anticipated competitive advantage and technological innovation which may render its anticipated competitive advantage obsolete; global demand and price of natural gas (relative to the price of imported LNG); the availability of LNG ships around the world; changes in laws and regulations relating to the LNG industry, including environmental laws and regulations that impose significant compliance costs and liabilities; the ability of NextDecade to develop and implement carbon capture and storage or similar technology to reduce the terminal’s expected carbon emissions; the 2019 novel coronavirus pandemic and its impact on NextDecade’s business and operating results, including any disruption to NextDecade’s operations or terminal development and the health and safety of NextDecade employees, and on customers of NextDecade, the global economy and the demand for LNG; risks associated with doing business and having counterparties in foreign countries; the ability of NextDecade to maintain the listing of its securities on a stock exchange or a listing medium; changes negatively affecting the activity in which NextDecade is engaged; growth management; general economic conditions; the ability of NextDecade to generate liquidity; compliance with environmental laws and regulations; the outcome of future fundraising efforts and customary tax incentive demands; and other matters discussed in the “Risk Factors” section of NextDecade’s annual report on Form 10-K for the fiscal year ended December 31, 2019 and other subsequent reports filed with the Securities and Exchange Commission, which are all incorporated herein by reference. In addition, any development of the terminal remains subject to the conclusion of the required commercial agreements, obtaining all necessary permits and approvals, securing all financing commitments and potential tax incentives, achieving other usual conditions and making a final investment decision. The forward-looking statements contained in this press release speak as of the date of this press release. Although NextDecade believes that the expectations reflected in these forward-looking statements are reasonable, it cannot guarantee that the expectations will prove to be correct. NextDecade may from time to time voluntarily update its prior forward-looking statements, however, it disclaims any commitment to do so, except as required by securities laws.