In addition to its announcement with AEP to develop oxyfuel powerplants B&W, a unit of McDermott International, Inc.(NYSE: MDR), also announced on March 15 that it has signed an agreement with CO2 solutions (CDNX: CST.V) for the acquisition of a license option and a significant contribution to the costs of a joint technological development program.
CO2 Solutions has developed a bioreactor, containing packing that has an enzyme, extracted from genetically engineered E. coli, attached to it, that can absorb CO2 and convert it into bicarbonate, which is an environmentally safe product that is use to capture CO2 from the exhaust from power plants and industrial facilities.
B&W will purchase an exclusive option to license to market, in North America, the technology developed by CO2 Solutions for use in coal combustion based electricity generating plant applications. To acquire this option, B&W is making an initial payment of $500,000 US upon signing the agreement, and will make a second payment of $500,000 US following the attainment of certain pre-determined milestones. Furthermore, as part of the agreement, B&W will take on the expenses involved in adapting this technology for a pilot project at a coal fired plant, which was announced last October. The agreement also foresees that in light of the results obtained, the two companies may undertake negotiations for a license grant.
According to the Energy Information Administration (EIA), CO2 emissions from coal fired power generation in the United States were nearly 2 Billion tons in 2006, or approximately one-third of total U.S. emissions. These emissions were equivalent to CO2 emissions from the transportation sector, including automobiles. This analysis suggests that capture and storage of CO2 emissions from coal power plants is an important part in reducing greenhouse gas emissions as well as a large market for companies producing equipment for mitigating these emissions.
Thanks to Tyler at Clean Break for the tip.
There seems to be a rash of news recently on technologies that control CO2 emissions. A sign that the world is waking up to the problem of global warming and by industry that the time has come that will allow them to make some money on this problem.