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.

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.