The Odessa Development Corporation and Nacero Inc have announced plans to build a $6.5 billion to $7 billion lower carbon gasoline manufacturing facility at a site in Penwell, Texas.
The facility will be built in two phases, with phase one producing 70,000 barrels per day of gasoline component ready for blending and phase two increasing that capacity to 100,000 barrels per day, a statement posted on Nacero’s website revealed.
The gasoline produced at the facility will contain no sulfur and will have half the lifecycle carbon footprint of traditional gasoline, according to the company, which said the gasoline will be made from a combination of natural gas, captured bio-methane, and mitigated flare gas.
Construction of the Penwell facility, which is scheduled to begin before the end of the year, will employ a peak of 3,500 skilled workers during the four years of phase one construction, Nacero revealed. When fully operational, the plant will employ 350 full time operators and maintenance personnel in three shifts with a forecast annual salary of approximately $85,000 per person, the company noted.
All of the plant’s electricity will come from renewable sources, according to Nacero, which said the plant will be the first in the U.S. to make gasoline from natural gas and the first in the world to do so with carbon capture and sequestration. The Odessa Development Corporation and the Economic Development Department of the Odessa Chamber of Commerce led negotiations that resulted in Penwell being chosen for the facility.
“Ector County is the ideal location for us,” Nacero President and Chief Executive Officer Jay McKenna said in a company statement.
“From a geographic and logistics standpoint you can’t beat it. We will be a major new market and beneficial home for the natural gas that is currently flared in the Permian Basin,” he added.
Odessa Development Corporation Chairman Tim Edgmon said, “this project proves once again that West Texas in general, and Odessa in particular, leads the nation in energy innovation and production”.
To contact the author, email andreas.exarheas@rigzone.com
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