Tenaska's Longleaf CCS Hub to Support Carbon Reduction in South Alabama

MOBILE, Ala. , March 22, 2024 /PRNewswire/ — Tenaska, a private U.S. energy company with over 35 years of experience, today officially announced the Longleaf CCS Hub, a carbon capture and storage (CCS) project planned for Mobile County. The facility will provide an innovative business solution to assist manufacturers, power plants, industrial processors and other industries in South Alabama in meeting emissions regulations and climate mandates.

The project will add to the stability and growth of the region, offering a viable path for existing businesses to comply with evolving environmental standards and attracting new ventures that will contribute to the region’s economic vitality and employment opportunities.

“Through the Longleaf CCS Hub, we’re not just addressing the growing demand for efficient CO₂ management solutions; we’re fostering an ecosystem of economic resilience and sustainability,” said Joel Link, president of Tenaska’s Development Group. “This project reflects our commitment to innovative solutions while propelling Alabama to the forefront of economic growth.”

Roughly 85 people – elected officials, economic development proponents, business leaders and others – participated in the launch event held at the GulfQuest National Maritime Museum in Mobile.

“We are delighted to see the unveiling of Tenaska’s Longleaf CCS Hub, which will employ cutting-edge technology to securely store carbon dioxide emissions from industrial processes and keep them out of the atmosphere,” said Mobile Chamber President and CEO Bradley Byrne. “This innovative project is a significant step toward a sustainable future for South Alabama, that not only addresses the pressing need for efficient CO₂ management solutions but also promises to bolster our region’s economic resilience and employment stability.”

Mobile Mayor Sandy Stimpson said: “Technologies like carbon capture and storage are key solutions to environmental and business challenges. This proven and tested technology will both help existing industries meet their environmental goals and provide a carbon emissions solution for businesses looking to relocate here. As a city, we believe that environmental needs and business growth can coexist.”

“Today marks a major investment in Mobile County, and it is a vote of confidence on Tenaska’s part for Mobile County and our entire region,” said Mobile County Commissioner Connie Hudson. “The Longleaf CCS Hub benefits both our environment and our industries. By providing a CO₂ storage solution, this project helps our existing businesses meet their environmental goals. It is also attractive to new businesses who may be looking to locate or expand in Mobile County. Finally, it also helps position our region as a leader in forward-thinking and sustainable economic development and does so with minimal impact to our natural environment.”

Longleaf CCS Hub is participating in an award through the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM), allowing for $17.9 million in funding to support geologic characterization and permitting efforts. This DOE funding brings together a diverse project team, which includes Southern States Energy Board (award recipient), Tenaska, Advanced Resources International, Crescent Resource Innovation, ENTECH Strategies, the Geological Survey of Alabama, the University of South Alabama and Williams. Baker Hughes Oil Field Services and Environmental Resources Management will also participate as vendors, with Southern Company Services taking on the role of the Project Industry Network lead.

“Our organization is dedicated to eliminating barriers preventing technological innovation while maintaining a firm commitment to improving the nation’s energy and environmental standards,” said Ken Nemeth, secretary of the Southern States Energy Board. “This project is one more step on the path toward sustainable energy security in the South.”

Tenaska’s initial development of the Longleaf CCS Hub started in 2022. The project’s Class VI application is under review by the U.S. Environmental Protection Agency, and Tenaska has solicited interest from a number of emitter customers in the region. Pending all necessary permitting approvals, construction is slated to begin as soon as late 2025, with commercial injection expected a year later. Actual start of construction will be scheduled to synchronize the start of injection with the customers’ readiness to capture CO₂.

To support community engagement efforts, Tenaska has hired a local representative from the Mobile area and opened a local project office. More information can be found at www.longleafccshub.com.

With Tenaska’s established presence in Alabama for over two decades, the company is excited to expand its footprint. The Longleaf CCS Hub is part of Tenaska’s extensive portfolio of CCS projects across the United States, strategically positioned to serve motivated emitter customers and leverage suitable geological formations. This initiative is a clear demonstration of Tenaska’s adaptability and innovation in response to the evolving energy landscape, underscoring its proven expertise in energy development.

About Tenaska

Consistently ranked among Forbes’ List of America’s Largest Private Companies, Tenaska is a leading energy company with business operations that span the energy value chain. Tenaska Marketing Ventures (TMV) and Tenaska Power Services Co. (TPS) are among the largest natural gas and electric power marketing companies in North America. The company has an operating fleet of 7,700 megawatts (MW) of natural gas and renewable generating facilities and throughout its history has developed, managed and/or operated approximately 22,128 MW of natural gas-fueled and renewable generation. Tenaska’s development services portfolio includes more than 28,887 MW of solar, wind and energy storage projects and green hydrogen initiatives, in addition to the development of 10 carbon sequestration projects capable of storing 50 million metric tons of CO₂ per year. Tenaska seeks investment opportunities to allocate its capital into generation assets nationwide. For more information, visit www.tenaska.com.

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