Block Energy, the development and production company focused on Georgia, has announced a Memorandum of Understanding ('MoU') with JSC Rustavi Azot, a subsidiary of Indorama Corporation, one of Asia's leading chemical companies, to develop the Carbon Capture and Storage ('CCS') opportunity identified within Block's Patardzeuli-Samgori Middle Eocene reservoir. The MoU is non-exclusive, and has a duration of 1 year from 7 May 2024, extendable by mutual agreement.
Block and Rustavi Azot will form joint technical and commercial teams to begin defining a pilot CO2 injection project and will share commercial and economic information to determine an optimal monetisation scheme.
The work will build on the initial study by Oilfield Production Consultants ('OPC') which, as announced on 16 January 2024, estimates a CO2 storage capacity ranking - at both reservoir and basin scales - amongst the highest in Europe. The reservoir scale storage is estimated at 256 million metric tonnes, equivalent to offsetting the annual emissions of 55 million cars, and the basin scale at up to 8.7 gigatonnes, equivalent to offsetting emissions from Turkey for 20 years.
The study, led by Professor Eric Oelkers, a leading expert in the field of water-rock interactions, concluded that the Patardzeuli-Samgori Middle Eocene is suitable for the application of similar sequestration technology currently being used by Carbfix in Iceland, in which dissolved CO2 is mineralised into naturally reactive minerals within volcanic reservoir sequences. This technique, which Professor Oelkers helped develop as co-founder of CarbFix, has the advantage of rapid and permanent sequestration with minimal risk of leakage.
About Rustavi Azot
Rustavi Azot is a key nitrogen fertilizer and industrial chemicals producer in Georgia. Rustavi Azot is a subsidiary of Indorama Corporation, Singapore. Indorama, together with its affiliate companies, produces a wide range of products for an international market, including fertilisers, chemicals and textiles. Rustavi Azot is located close to Block's licences by the town of Rustavi. Rustavi Azot is one of the largest gas consumers in Georgia and exports its products internationally, including to EU member states.
Synergies & Sustainability
The optimal geology of the Patardzeuli-Samgori reservoir, which the OPC study indicates is accessible to proven sequestration technology, and the proximity of the Rustavi Azot facility offer the conditions for one of the lowest cost carbon sequestration projects in Europe. The project supports both partners' long-term commitment to sustainability.
Commenting, Paul Haywood, Block Energy Chief Executive Officer said:
'We're delighted to enter into an MoU with Rustavi Azot, and now look forward to forming technical and commercial teams to progress this highly prospective CCS project.
With EU Emissions Trading Scheme ("ETS") prices at around USD 60/ton, the agreement is a significant step forward to developing a commercial pathway toward project development. With upstream and downstream synergies critical for any CCS project, brownfield infrastructure available for re-use, and the conditions for low-cost proven technology, we are excited to see this project develop and look forward to updating shareholders in due course.'
Commenting, Mr. Jay Prakash Jajoo, General Director of JSC Rustavi Azot said:
'Indorama is pleased to enter into this MoU with Block Energy to pilot CCS. We are excited to serve our key markets with products having lower CO2 footprints in our commitment towards reducing carbon emissions.'
Click here for further info re Carbon Capture and Storage (CCS) opportunity within Block XIB field with the potential to support a major net-zero CO2 industrial hub.
Source: Block Energy
