Summit Power’s New Financing Announced
Yesterday at the 12th annual U.S.-China Oil & Gas Industry Forum in San Antonio, Texas, Summit Power Group (Summit) signed a Memorandum of Understanding with Sinopec Engineering Group and The Export-Import Bank of China (Chexim) to help with financing and construction of the planned Texas Clean Energy Project (TCEP).
Laura Miller, Summit’s Director of Texas Projects, and former Mayor of Dallas served on the RECS 2012 faculty, and gave an engaging overview of the project this past June. The TCEP is a large-scale commercial coal gasification / poly-gen project under development near Odessa, Texas that will capture 90% of its CO2 emissions for use in enhanced oil recovery (EOR). (Summit has entered into an offtake agreement with Whiting Petroleum Corp. for the CO2.) TCEP will also produce more than 700,000 tons per year of urea as fertilizer for U.S. farmers and provide a 200 megawatt supply of ultra-clean, low-carbon electric power to CPS Energy, the municipal electric and gas utility of San Antonio.
Chexim will be the sole financial lender to TCEP, subject to completion of the engineering, procurement and construction (EPC) contract and Chexim’s due diligence. The total cost will be more than $2.5 billion, of which $450 million will be provided by a cost-sharing award from the U.S. Department of Energy. The Chexim loan will satisfy all of TCEP’s needs for project debt. Under a previously signed EPC contract, Siemens will supply a high-hydrogen combustion turbine, and Selas Fluid Processing Corp., a U.S. affiliate of Linde, will provide key equipment and support Sinopec in the chemical block EPC contract. Summit also announced that CHS Inc., a company owned by U.S. farmer, ranchers and co-ops across the U.S., will purchase all of TCEP’s urea output and make a small equity investment in the project.
Pamela Tomski, RECS Founder and Director, featured the TCEP in an article, “Summit Heads South" published in the April 2012 edition of Energy Focus, a magazine of the U.K. Energy Industries Council.