Department of Energy provides $98 million for carbon storage hub at BP Whiting Refinery

The U.S. Department of Energy will supply $98.24 million for a carbon storage hub at the BP Whiting Refinery that could lessen the greenhouse gas emissions of the heavy industry along Northwest Indiana's lakefront.

The $138 million project also will have $39.8 million in other funding. The goal is to help decarbonize Northwest Indiana, which is home to some of country's heaviest industry like steel mills and oil refineries.

“This is outstanding news that further builds on the recent announcement for a transformational clean hydrogen hub and is a testament to the incredible manufacturing workers of our region," Congressman Frank J. Mrvan said. "I congratulate all the leaders and dedicated union workforce at BP, and remain grateful for the leadership of Governor Holcomb and everyone in the State of Indiana for having a shared commitment and foresight to create the conditions necessary for this type of success. Let us continue to collaborate and build on this momentum to ensure Northwest Indiana remains a leader in creating new clean energy jobs and technologies.”

The funding will support Project Crossroads, which is eying carbon storage facilities to decarbonize Northern Indiana, Northeastern Illinois and Southwestern Michigan.

Houston-based BP Carbon Solutions LLC is planning to develop a geologic storage hub around its Whiting Refinery to store captured emissions deep into the strata to decarbonize Northwest Indiana. It's looking to store up to 23 million tons a year in underground wells in Upper Mt. Simon Sandstone deep underground.

More than 100 miles of new pipeline will be installed for the carbon storage facilities that will be drilled in a project area that includes Indiana, Illinois and Michigan.

BP has been looking at capturing carbon emissions would be captured at its Whiting refinery, steel mills and factories in Northwest Indiana. It would be transported by pipeline downstate to sites in Newton, Jasper, Pulaski, White and Benton Counties, where it would be injected deep underground into strata.

The project has met with vocal opposition in many of those communities, which are being looked at because they are the closest to the BP Whiting Refinery with the right geological profile to trap carbon underground. The sandstone underneath Lake County is unsuitable for carbon storage as it's only about 1,000 feet deep while BP is eying Mr. Simon sandstone that would be 3,000 to 5,000 feet deep.

It would be capped by Eau Clare shale and continuously monitored to ensure it did not leak into the groundwater. Residents have voiced concerns about safety and property rights.

It's estimated Northwest Indiana generates about 40 million tons a year of the carbon emissions scientists say cause climate change. BP also is looking at a hydrogen production hub to help clean up local heavy industry in the Calumet Region, including its own refinery, the largest inland refinery in the United States supplying gas to seven Midwestern states.

The carbon capture and sequestration and hydrogen projects also would potentially serve the manufacturing, marine, transport and railroad industries in Northwest Indiana.