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).
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SOURCE Delek US Holdings, Inc.