MONTERREY, Mexico, March 29, 2021 /PRNewswire/ -- ContourGlobal plc ("ContourGlobal") and Alpek, S.A.B. de C.V. ("Alpek") announced today they have formed a new company that is developing a CO2 capture and liquefaction facility for sale to the food, beverage, and medical industries. The facility will be integrated into ContourGlobal's 420 MW Combined Heat and Power Plant located in Altamira, Mexico ("CGA") which provides electricity, heat and steam to Alpek and its affiliates.
The new company will sustainably supply the rising need of food-grade CO2 in Mexico, which currently has a 80,000 tons per year deficit requiring expensive imports from the United States. The joint venture is well positioned to meet these supply shortfalls. For more than a decade ContourGlobal has been a leader in integrating CO2 capture and liquefaction into natural gas fired power plant operations, providing food grade CO2, and to date has captured over 300,000 tonnes of CO2. Contour has fully integrated five carbon capture facilities into power plant operations, and has maintained electricity generation reliability at or above levels of similar plants without CO2 capture. Its efforts have been recognized with numerous awards for innovation and environmental impact. Building on this expertise, ContourGlobal sees an opportunity to invest over $100m in CO2 capture or utilization investments over the next 18 - 24 months.
In the new company, ContourGlobal will be responsible for the construction and operation of the large-scale CO2 capture and liquefaction facility, while Alpek will be responsible for distribution, marketing, and sale of the food and beverage and medical quality CO2. Final commercial due diligence is underway with a final investment decision ("FID") expected by the end of 3Q 2021.
Key Highlights:
- attractive investment which will deliver a valuable product to customers
- builds upon and expands ContourGlobal's demonstrated expertise with Carbon Capture, a technology that is recognized as being integral for countries and the world to become Net Carbon neutral by 2050
- aligns with both companies' sustainability objectives by removing CO2 from atmosphere and displacing the current transportation of CO2 from the United States, including ContourGlobal's stated goal to reduce CO2 intensity by 40% by 2030 and become Net Carbon Neutral by 2050
Joseph C. Brandt, Chief Executive Officer, said: "By capturing CO2 and processing it to food-grade standards we are improving the efficiency of our CGA plant in Mexico and meeting the needs of our industrial customers, while reducing our carbon footprint in line with our sustainability objectives. This venture combines the operational excellence of both partners, alongside ContourGlobal's expertise in Carbon Capture and Alpek's ability to leverage its long-standing customer relationships. We believe that the project will deliver a sustainable and commercial use for some of the CGA plant's CO2 emissions while providing an attractive rate of return."
About ContourGlobal:
ContourGlobal is listed on the premium segment of the London Stock Exchange (TKR: GLO). ContourGlobal is an international owner and operator of contracted wholesale power generation businesses. It owns and operates approximately 6,306 MW in 117 power plants in 20 countries around the world.
About Alpek:
Alpek is a leading petrochemical company operating two business segments: "Polyester" (PTA, PET, rPET, and polyester fibers), and "Plastics & Chemicals" (polypropylene, expandable styrenics, caprolactam, and other specialty & industrial chemicals). Alpek is a leading producer of PTA and PET worldwide, one of the largest rPET producers in the Americas, the third largest expandable polystyrene manufacturer worldwide, and the only producer of polypropylene and caprolactam in Mexico. In 2020, Alpek reported revenues of U.S. $5.3 billion and Comparable EBITDA excl. RMCF of U.S. $601 million. The Company operates 31 plants in the United States, Mexico, Canada, Brazil, Argentina, Chile and the United Kingdom, and employs more than 6,000 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
