CO2 Solution signs million-dollar development deal with Babcock & Wilcox
CO2 Solution, in Quebec City has signed a licensing agreement with Babcock & Wilcox (B&W) giving the latter an exclusive option to license to market, in North America, CO2 Solution's technology for reducing greenhouse gas (GHG) emissions from coal-fired electricity generating plants.
The agreement will also make a significant contribution to the costs of a joint technological development program, through an initial payment by B&W of $500,000 (U.S.) upon the signing. A second $500,000 (U.S.) will follow once the certain pre-determined milestones have been reached.
As part of the agreement, B&W will also take on the expenses involved in adapting CO2 Solution's technology for a pilot project at a coal-fired plant, which was announced last October. The agreement includes a provision for the two companies to undertake negotiations for a license grant, pending the results of this pilot project.
"The objective of this long-term agreement is to enable CO2 Solution to reach the wide-scale commercialization stage in an organized and structured manner. We think that this collaboration be highly beneficial to both companies," said Jacques Raymond, president and CEO of CO2 Solution. Don Langley, B&W's vice-president and chief technology officer, said CO2 Solution's enzyme-based technology is a promising direction in the field of carbon dioxide capture from power plants.
Statistics from the U.S. government's Energy Information Administration (EIA) indicate that coal-fired power generating facilities in that country released nearly two billion tons of CO2 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 have an important role to play in reducing GHG emissions in the U.S.