Mar. 16, 2011 (PR Newswire) --
HOUSTON, March 16, 2011 /PRNewswire/ -- DKRW Advanced Fuels LLC (DKRW) of Houston, Texas, announced today that its wholly owned subsidiary, Medicine Bow Fuel and Power LLC (MBFP), has entered into a CO2 Purchase Contract with Denbury Onshore, LLC (a wholly owned subsidiary of Denbury Resources Inc, (NYSE: DNR), whereby Denbury will purchase 100 percent of the carbon dioxide, CO2, captured from MBFP's industrial gasification and liquefaction facility located at Medicine Bow, Wyoming.
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MBFP will capture CO2 from its Medicine Bow, Wyoming coal-to-transport fuels project, clean and compress it prior to delivering the product to Denbury for use in Denbury's oil fields for carbon dioxide enhanced oil recovery (CO2-EOR) in the Mountain Region and ultimately for sequestration in the CO2-EOR reservoirs. CO2-EOR has been used for years in West Texas, Gulf Coast, Rocky Mountains and Canada to increase oil production from depleted oil and gas fields. CO2-EOR will enable producers to increase the ultimate recovery of oil from existing oil fields thus reducing the volumes of oil imported from overseas.
"We are excited to announce this important relationship with Denbury which enables the sequestration of the CO2 captured from the MBFP process and increases the production of domestic crude from CO2-EOR at a time when the nation faces increased exposure to market disruptions caused by increased reliance on unreliable sources of supply," Jon Doyle, CEO DKRW Advanced Fuels, said. "We believe the pre combustion capture of CO2 from our process allows for the environmentally responsible production of gasoline from domestic resources which is essential for the long term strength of our economy and national energy security."
"We believe all forms of energy will be needed to meet the requirements of the American economy and ensure our national security," said Robert Kelly, Executive Chairman of DKRW.