Energy transition

Nacero Awards Bechtel FEED Contract for Natural-Gas-to-Gasoline Plant

The facility would be the first of its kind in the US and is planned to be located in West Texas’ Permian Basin.

Nacero-facility-entrance-rendering.jpg
Rendering of the planned Nacero gasoline plant.
Credit: Nacero.

Nacero has tapped Bechtel to conduct front-end engineering and design (FEED) work for its planned natural-gas-to-gasoline manufacturing facility destined for Penwell, Texas, near Odessa. The 115,000 B/D facility will be the first of its kind in the US and will be the first gasoline manufacturing plant in the world to incorporate carbon capture, carbon sequestration, and 100% renewable power, according to Nacero.

The use of renewable natural gas and mitigated flare gas will make it possible to reduce the life cycle footprint of Nacero's zero-sulfur gasoline to zero over time. Nacero's products will be sold to retailers in Texas and the Southwest, and through Nacero-branded outlets.

“This project is truly a game-changer,” said Paul Marsden, president of Bechtel Energy. “It will give everyday American drivers a chance to participate in the energy transition and will be a model for the kind of environmental improvement America is looking to bring about.”

As designed, the Penwell facility will have a carbon capture capacity of 1.5 mtpa. Its integrated solar power generation will come from an onsite 200+ MW solar PV plant. The facility will also host hydrogen co-production capabilities targeting 140 tons/day of hydrogen production.

On completion of the FEED, Bechtel will deliver a lump sum, turnkey EPC (engineering, procurement and construction) price proposal.

Nacero's Penwell project is expected to employ 3,500 construction workers on site at peak during the estimated 4-year initial phase of construction. The second phase of construction will take an additional 2 years and bring plant capacity to 115,000 B/D.

When fully operational, the plant will employ 350 full-time operators and maintenance personnel. The University of Texas has estimated that the Penwell facility will add more than $25 billion to the economy of the Odessa region during its 50+ year operating life.