NextDecade welcomes OGCI fund as investor
US LNG player NextDecade said March 29 it had brought on a fund that prioritises financing carbon capture and storage (CCS) as a major investor.
NextDecade announced that it sold $10mn in stock in a private placement to OGCI Climate Investments Holdings LLP, a fund focused on low-carbon opportunities and CCS initiatives.
Matt Schatzman, NextDecade’s CEO, said it was a pleasure to bring them on as an investor.
“We share a vision of providing the world access to cleaner energy,” he said. “This capital will enable the further advancement of NextDecade’s proprietary processes to lower the cost of utilising CCS technology and the realisation of the transformative and impactful contributions that we expect to make to the global energy industry and the quest toward a net-zero future.”
The $1bn fund was set up in 2016 by the Oil and Gas Climate Initiative, a consortium of energy companies aligned with the goals laid out in the Paris climate accord.
NextDecade, for its part, is working on a 27mn metric ton/year LNG export project in Texas, Rio Grande. If built, the facility would draw on natural gas from the Eagle Ford and Permian basins and is touted as “the largest and greenest US LNG export solution.”
In October, NextDecade announced that it aims to reduce CO2 emissions at the Rio Grande terminal by 90% using CCS technology and other processes. The company is hoping to take a final investment decision on construction this year.