Delek US Holdings' Big Spring Refinery Selected by the Department of Energy for Carbon Capture Project
BRENTWOOD, Tenn., Feb. 2, 2024 /PRNewswire/ -- Delek US Holdings, Inc. (NYSE: DK) ("Delek US") today announced that it has been selected by the Department of Energy's (DOE) Office of Clean Energy Demonstrations to negotiate a cost-sharing agreement in support of a carbon capture pilot project in the Big Spring refinery. The DOE Carbon Capture Large-Scale Pilot Project program provides 70% cost-share for up to $95 million of federal funding to support project development.
"We are honored and pleased the DOE has selected Delek's carbon capture project," said Avigal Soreq, President and Chief Executive Officer of Delek US. "The selection of the Big Spring refinery validates its competitive advantage, solid operations, and the opportunities in our assets. Carbon Capture is important for decarbonizing hard-to-abate sectors."
"This project will position Delek US as a strong leader in the energy transition while meeting our financial and other objectives for stakeholders and maintaining our disciplined approach to capital allocation," Soreq added. "We look forward to working with the DOE and leading industry partners to advance carbon capture technology in a safe and environmentally responsible manner."
The project will deploy Svante Technologies Inc.'s second-generation carbon capture technology at the Delek Big Spring refinery's fluidized catalytic cracking unit (FCCU), while maintaining existing production capabilities and turnaround schedule. Expectations for the project are to capture 145,000 metric tons of carbon dioxide per year, as well as reduce health-harming pollutants, such as SOx and particulate matter. Carbon dioxide is expected to be transported by existing pipelines for permanent storage or utilization. A goal of the Big Spring refinery FCCU pilot is to achieve cost reductions and help commercialize carbon capture technology.
As part of Delek's commitment to the communities in which we operate, this project provides opportunities for advancement of our skilled workforce. Delek will partner with the International Union of Operating Engineers (IUOE) and the United Steelworkers (USW) to execute the project. In addition, a carbon capture schoolhouse will be established to equip current and future workforces with valuable skillsets needed for the energy transition. The project is expected to create approximately 200 construction and operations jobs in 2027 and 2028.
About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, renewable fuels and convenience store retailing. The refining assets consist primarily of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day. Pipeline assets include an ownership interest in the 650-mile Wink to Webster long-haul crude oil pipeline. The convenience store retail segment operates approximately 250 convenience stores in West Texas, New Mexico, and Arkansas.
The logistics operations include Delek Logistics Partners, LP (NYSE: DKL). Delek Logistics Partners, LP is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. Delek US Holdings, Inc. and its subsidiaries owned approximately 78.7% (including the general partner interest) of Delek Logistics Partners, LP at September 30, 2023.
Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning estimates, expectations or projections about future dividends, results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are "forward-looking statements," within the meaning of federal securities laws. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and investors are cautioned that risks described in the Company's filings with the United States Securities and Exchange Commission, among others, could cause actual performance or results to differ materially from those expressed in the statements. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements. The Company undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur or that the Company becomes aware of after the date hereof, except as required by applicable law or regulation.
Information about Delek US Holdings, Inc. can be found on its website (www.delekus.com), investor relations webpage (ir.delekus.com), news webpage (www.delekus.com/news) and its Twitter account (@DelekUSHoldings).
View original content to download multimedia:https://www.prnewswire.com/news-releases/delek-us-holdings-big-spring-refinery-selected-by-the-department-of-energy-for-carbon-capture-project-302052242.html
SOURCE Delek US Holdings, Inc.
