Chinese oil major may invest up to $1bn in integrated gasification project.
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A clean coal power station in the US Image: Americaspower |
Asia's largest refiner, Sinopec, is deliberating a $1 billion investment in the 400-megawatt Texas Clean Energy Project which will generate clean coal energy through integrated gasification. People familiar with the negotiations claim the Project could be announced as early as September. The U.S. government has already allocated $450 million in grants toward the $2.5 billion operation, which will be built in Odessa.
Progess is already well underway, with tax benefits and necessary permits for contracts already secure. Once in operation, it is estimated that the Project would capture a 90% of carbon dioxide otherwise emitted into the atmosphere for use in oil recovery.
While the U.S. Department of Energy is apparently welcoming the investment from the Chinese major, Washington commentators have been quick to condemn a recent energy bid from rival Chinese oil producer, CNOOC, which is looking to purchase Canada's Nexen's assets for $12.5 billion. America's official position on Chinese energy investment remains unclear, especially as politicians refine and adjust their viewpoints to gain favour for the upcoming presidential election.