Rex Idles NuGen Plant, Explores Carbon Sequestration Project
Rex American Resources Corp. released fiscal fourth quarter financial results on March 26. The company discussed a potential carbon capture and sequestration project under development at its One Earth Energy plant in Illinois and discussed the impact of COVID-19 on plant operations.
During an earnings call, Stuart Rose, executive chairman of Rex, said the company’s entire operation is running at a loss, mostly due to its ethanol operations. He said a bad corn harvest last fall, low oil prices, and the COVID-19 outbreak are causing problems for the ethanol industry.
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Similar steps may be taken at the One Earth Energy plant since the governor of Illinois has issued stay-at-home orders and the gross margin has declined, Rizvi (Zafar Rizvi, CEO of Rex) continued.
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Rizvi said the company is working with the University of Illinois to explore a carbon sequestration project at the One Earth Energy plant. Geological mapping, characterization and modeling have demonstrated the potential to store carbon dioxide captured at the plant in Mount Simon Sandstone, a local geological formation. He cautioned, however, that the project is in the very early stages.
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Rex also operates a refined coal segment. READ MORE