In brief: OGCI backs integrated natural gas and carbon capture business

OGCI Climate Investments, an organisation backed by energy majors that manages a $1 billion global decarbonisation fund, has invested in a project company in Pennsylvania that will integrate natural gas extraction with carbon capture and storage, the firm said this week.

The company, KeyState Natural Gas Synthesis, will “pull natural gas, methane, up from a mile below the surface, separate the carbon and return the majority of it back deep underground, with the potential to permanently sequester more than 300,000 tons of CO2 per year,” said KeyState CEO Perry Babb. “I believe that the future for America’s natural gas is a lower-carbon future, combining gas production, CO2 extraction and permanent CO2 storage.”

OGCI Climate Investments was formed by the Oil & Gas Climate Initiative, an organisation created by 12 oil and gas majors. A China-focused version of the fund is currently being formed.