On Tuesday, Houston energy producer Nacero announced that it has contracted engineering and construction giant Bechtel to provide Front-End Engineering and Design (FEED) for its flagship new plant in Penwell, Texas. The 115,000 barrel per day facility, located in Penwell, near the Permian Basin boomtown of Odessa, is set not only to become the first natural-gas-to-gasoline production facility in the United States, but also the first gasoline manufacturing plant in the world to incorporate carbon capture and sequestration, along with 100 percent renewable power.
According to Nacero, using renewable natural gas and mitigated flare gas will enable reduction of the lifecycle footprint of its zero sulfur gasoline to zero over time. Nacero’s products will be sold to retailers in Texas and the Southwest, and through Nacero-branded outlets.
“We are thrilled to partner with Bechtel for our flagship facility in Penwell. Bechtel’s experience with large-scale projects and commitment to excellence is second to none,” said Jay McKenna, Nacero’s President and CEO. “For America to achieve its domestic energy and climate change mitigation goals we need big vision and laser-focused execution. Bechtel is center stage in helping us get there.”
“We are delighted by this opportunity to support Nacero’s pioneering approach to delivering lower carbon fuel with our record of large-scale project success,” said Bechtel Energy President Paul Marsden. “This project is truly a game-changer. It will give everyday American drivers a chance to participate in the energy transition and will be a model for the kind of environmental improvement America is looking to bring about.”
On completion of the FEED, Bechtel will deliver a lump sum, turnkey EPC price proposal. Bechtel will employ its range of sustainable design and execution tools to bring about carbon reduction in the supply chain and reduce the carbon footprint of the project during construction. Bechtel and Nacero have expressed a shared commitment to “best in class” environmental, social, and governance (ESG) practices.
Nacero’s Penwell project is one of the largest energy transition infrastructure opportunities in the United States. The project is expected to employ 3,500 skilled construction workers on site at peak during the four years first phase construction. The second phase of construction will take an additional two years and bring plant capacity to 115,000 barrels per day. When fully operational, the plant will employ 350 full-time operators and maintenance personnel. The University of Texas has estimated that the Penwell facility will add more than $25 billion to the economy of the Odessa region during its 50-plus year operating life.
