Valero and BlackRock team on industrial scale carbon capture pipeline system

In Texas, Valero Energy Corporation and BlackRock Global Energy & Power Infrastructure Fund III are partnering with Navigator Energy Services to develop an industrial scale carbon capture pipeline system. The initial phase is expected to span more than 1,200 miles of new carbon dioxide gathering and transportation pipelines across five Midwest states with the capability of permanently storing up to 5 million metric tons of carbon dioxide per year. Pending third party customer feedback, the system could be expanded to transport and sequester up to 8 million metric tons of carbon dioxide per year. Valero, the largest renewable fuels producer in North America, is expected to become an anchor shipper by securing a majority of the initial available system capacity. Navigator is expected to lead the construction and operations of the system and anticipates operations to begin late 2024. In the coming months, Navigator will seek additional commitments to utilize the remaining capacity via a binding open season process.