Continental Resources to create 'largest of its kind' CCS project
Continental Resources (NYSE:CLR) +1.8% pre-market after saying it will commit $250M over the next two years to help fund the development and construction of the largest carbon capture and sequestration project of its kind in the world.
The Summit Carbon Solutions project will capture CO2 from ethanol plants and other industrial sources in Iowa, Nebraska, Minnesota, North Dakota and South Dakota, which will be aggregated and transported to North Dakota via pipeline, to be safely and permanently sequestered in subsurface geologic formations.
Continental says the project has commitments from 31 partner ethanol facilities to deliver more than 8M metric tons/year of CO2, with initial pipeline capacity of 12M tons/year and expansion capabilities to handle up to 20M tons/year.
Continental's return on capital employed "exceeds that of peers and of the market as a whole, which should set shareholders up for strong returns," Power Hedge writes in a bullish analysis posted recently on Seeking Alpha.