In a significant move that could reshape the energy landscape, Infrastructure investor I Squared Capital, its portfolio company Low Carbon Infrastructure (LCI), and tech giant Google have joined forces to develop Broadwing Energy, a natural gas-fired cogeneration plant integrated with carbon capture and storage (CCS) technology. Located in Decatur, Illinois, this 400MW power generation project is poised to deliver more than 1.5 million pounds of steam per hour, with the potential to permanently sequester over two million tonnes of CO2 emissions annually.
The project marks a first in the energy sector: the first-ever corporate offtake agreement for a CCS-enabled power plant. Google will purchase electricity from Broadwing Energy, while Archer Daniels Midland (ADM) will receive both electricity and steam. Once operational, over 90% of the plant’s CO2 emissions will be captured, compressed, and injected into underground wells for permanent storage.
Gautam Bhandari, Global Chief Investment Officer and Managing Partner of I Squared, emphasized the importance of collaboration in achieving decarbonization goals. This partnership, he noted, demonstrates how private investment, technological innovation, and corporate energy demand can coalesce to deliver scalable climate solutions. Michael Terrell, Head of Advanced Energy at Google, echoed this sentiment, expressing enthusiasm for supporting LCI’s pioneering efforts to prove and scale clean, firm power sources.
The implications for the energy market are profound. The success of Broadwing Energy could accelerate the adoption of CCS technology, making it a viable option for reducing emissions from industrial processes and power generation. This, in turn, could drive investment in similar projects, fostering a new wave of innovation in the energy sector.
Moreover, the corporate offtake agreement sets a precedent for other companies to follow, potentially leading to a surge in demand for clean, firm power. This could incentivize further development of CCS-enabled facilities, contributing to the decarbonization of industries and the power sector.
However, challenges remain. The high costs and technical complexities of CCS technology must be overcome to ensure its widespread adoption. Additionally, the regulatory framework must evolve to support and incentivize these projects. Despite these hurdles, the Broadwing Energy project represents a significant step forward in the quest for cleaner, more sustainable energy solutions.
As I Squared and LCI look to develop several similar CCS-enabled facilities, the energy market watches closely. The success of these projects could redefine the sector, driving a new era of innovation and collaboration in the pursuit of decarbonization.