Delek's (DK) Refinery to Pioneer DOE Carbon Capture Project
In a significant stride toward advancing carbon capture technology and promoting sustainability, the Department of Energy's (“DOE”) Office of Clean Energy Demonstrations has selected Delek US Holdings DK for a pioneering carbon capture pilot project at its Big Spring refinery. This DOE initiative, providing a substantial 70% cost-share for up to $95 million in federal funding, aligns with the national commitment to curb greenhouse gas emissions.
The company sees the development as a recognition of the refinery's competitive strength, operational prowess, and the broader potential inherent in its assets. Delek also acknowledged the pivotal role of carbon capture in decarbonizing challenging industrial sectors, asserting that the project will position it as a frontrunner in the ongoing energy transition.
The project, leveraging Svante Technologies Inc.'s cutting-edge carbon capture technology, is focused on the refinery's fluidized catalytic cracking unit (“FCCU”). Despite the transformative nature of this endeavor, Delek US strategically plans to uphold existing production capabilities and turnaround schedules. Projections for the initiative encompass the annual capture of 145,000 metric tons of carbon dioxide, coupled with a notable reduction in health-detrimental pollutants such as SOx and particulate matter.
A primary objective of the FCCU pilot is to realize cost reductions, thereby contributing to the wider commercialization of carbon capture technology. Crucially, the captured carbon dioxide is earmarked for transportation through existing pipelines, facilitating permanent storage or utilization.
Demonstrating its commitment to community development, the project is poised to generate employment opportunities. Collaborative efforts with the International Union of Operating Engineers and the United Steelworkers will not only execute the project but also lead to the establishment of a Carbon Capture Schoolhouse. This educational initiative is designed to equip current and future workforces with the requisite skills for the evolving energy landscape.
Foreseen to create approximately 200 jobs in construction and operations during 2027 and 2028, the project harmonizes with overarching national objectives of fostering sustainable practices and innovation in the energy sector. The DOE's selection of the Big Spring Refinery for this environmentally significant initiative marks a considerable leap towards a greener and more sustainable future.
Zacks Rank & Stock Picks
Founded in 2001, Brentwood, TN-based Delek US Holdings, Inc. is an independent refiner, transporter and marketer of petroleum products. The company carries a Zacks Rank #3 (Hold) at present.
Meanwhile, investors interested in the energy sector might look at operators like Oceaneering International OII, Murphy USA MUSA and Helix Energy Solutions Group HLX. OII currently carries a Zacks Rank #1 (Strong Buy), while MUSA and HLX are Zacks Rank #2 (Buy) stocks.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oceaneering International: The 2024 Zacks Consensus Estimate for OII indicates 76.4% year-over-year earnings per share growth.
Oceaneering is valued at around $2 billion. OII has seen its shares fall 2.6% in a year.
Murphy USA: Over the past 90 days, MUSA saw the Zacks Consensus Estimate for 2024 move up 6.5%.
Murphy USA is valued at around $7.6 billion. MUSA has seen its shares rise 37.8% in a year.
Helix Energy Solutions Group: The 2023 Zacks Consensus Estimate for HLX indicates 143.8% year-over-year earnings per share growth.
Helix Energy Solutions is valued at around $1.4 billion. HLX has seen its shares rise 18.2% in a year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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