DOE Awards Projeo $38M to Convert Oil & Gas Field into CO2 Storage Facility in Permian Basin

Nov. 22, 2023
The Pheonix Project hopes to demonstrate the feasibility of safely converting a mature oil and gas field in the Permian Basin into a dedicated carbon dioxide storage facility

Projeo Corporation, a subsidiary of GTI International, has received $38 million in DOE funding to support the development of new carbon storage demonstrations. Projeo’s project, The Pheonix Project, hopes to demonstrate the feasibility of safely converting a mature oil and gas field in the Permian Basin into a dedicated carbon dioxide storage facility. 

“We continue to look for ways to accelerate the energy transition using subsurface resources responsibly and safely. We believe existing upstream infrastructure and expertise have a critical role to play in this journey as we all work together towards a low-cost, low-carbon, energy-secure future. Our Phoenix Project in the Permian Basin is an important step to delivering on this mission,” said Nick Malkewicz, President of Projeo. 

The project will support the Carbon Storage Assurance Facility Enterprise (CarbonSAFE) Initiative, managed by DOE’s Office of Fossil Energy and Carbon Management (FECM), and is one of the seven recipients selected for CarbonSAFE Phase III: Site Characterization and Permitting. The recipients have completed studies of subsurface conditions and will conduct detailed site characterization, planning, and permitting stages of project development.

Under the purview of FECM, the DOE’s National Energy Technology Laboratory will manage the project, which will focus on detailed site characterization and risk mitigation to determine the capacity and injectivity of the storage complex. Information gathered from this effort will help complete a storage field development plan and apply for at least one UIC Class VI well permit. 

Additionally, Projeo will commence a risk assessment and mitigation plan for reliable and cost-effective ways to evaluate legacy wellbore conditions and risks and mitigation measures. The company will also execute a CO2 front-end engineering and design study and a CO2 source feasibility study for CO2 supply sources and transportation options as part of the project.