Tenaska’s Longleaf CCS Hub to Bring Economic Benefits to South Alabama

September 30, 2024

MOBILE, Alabama – September 30, 2024 – The Longleaf CCS Hub, under development by U.S. energy company Tenaska in Mobile County, will provide a significant economic benefit for Mobile and South Alabama. Today, Tenaska shared the results of an economic impact study conducted by the University of South Alabama Center for Business Analytics, Real Estate and Economic Development, which found that the carbon capture and storage (CCS) project will support an estimated 770 jobs and infuse $618.6 million into the regional economy during construction, as well as 18 jobs and $24.7 million annually into the economy once operational.

“These economic benefits and the project itself are a sign of our long-term investment in Mobile County and the State of Alabama,” said Bret Estep, Tenaska vice president, development. “The Longleaf CCS Hub is a flagship project for our company, and we’re really pleased with the support we’ve received locally as we look to support Mobile’s business community and further economic growth in the region.”

As envisioned, the Longleaf CCS Hub will provide an innovative business solution assisting manufacturers, power plants, industrial processors and other industries in South Alabama – and particularly along the Highway 43 corridor – meet emissions regulations and carbon reduction goals. The project will support those existing businesses and others looking to locate in the region in keeping jobs, tax revenue and other socioeconomic benefits in the area.

“Mobile is one of the best places in America to invest and grow a business, and the Longleaf CCS Hub is proof positive of that. It promises to be a major boost to both our existing industrial base and new businesses,” said Mobile Chamber President and CEO Bradley Byrne. “This project shows that we can grow our economy while protecting the environment and meet global challenges with market-driven solutions. We are appreciative of Tenaska’s commitment to our region and look forward to them helping grow our economy for years to come.”

Construction of the Longleaf CCS Hub is expected to span three years. The economic impact study estimated that construction would result in the following benefits (direct, indirect and induced) for the region:

• 770 jobs, with $208 million in employee wages, salaries and benefits
• $618.6 million in economic revenue impact¹
• $303.9 million in value-added² activity
• $69.9 million in tax impact

Once operational, the project is estimated to have an annual impact (direct, indirect and induced) for the region that includes:

• 18 jobs, with $6.2 million in employee wages, salaries and benefits
• $24.7 million in economic revenue impact¹
• $9.5 million in value-added² activity
• $2.1 million in tax impact  

The Longleaf CCS Hub will provide the transport and storage, or sequestration, of the captured carbon dioxide (CO₂). The project’s customers will be responsible for investing in the capture equipment at their facilities, which will provide additional economic benefits for the region.

Tenaska’s initial development of the Longleaf CCS Hub started in 2022. The project’s Class VI application is under review by the U.S. Environmental Protection Agency, and Tenaska has solicited interest from a number of emitter customers in the region. Pending all necessary permitting approvals, construction is slated to begin as soon as late 2025, with commercial injection expected a year later. Actual start of construction will be scheduled to synchronize the start of injection with the customers’ readiness to capture CO₂. 

Longleaf CCS Hub is participating in an award through the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM), allowing for $17.9 million in funding to support geologic characterization and permitting efforts. 

More information is available online at www.longleafccs.com. 

About Tenaska

Consistently ranked among Forbes’ List of America’s Largest Private Companies, Tenaska is a leading energy company with business operations that span the energy value chain. Tenaska Marketing Ventures (TMV) and Tenaska Power Services Co. (TPS) are among the largest natural gas and electric power marketing companies in North America. The company has an operating fleet of 7,700 megawatts (MW) of natural gas and renewable generating facilities and throughout its history has developed, managed and/or operated approximately 22,128 MW of natural gas-fueled and renewable generation. Tenaska’s development services portfolio includes more than 28,887 MW of solar, wind and energy storage projects and 10 carbon sequestration projects capable of storing 50 million metric tons of CO₂ per year. Tenaska seeks investment opportunities to allocate its capital into generation assets nationwide. For more information, visit www.tenaska.com.

For media inquiries, please contact:

Timberly Ross                                                Stephen Worley
402-691-9517                                               601-953-9564
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¹ REVENUE IMPACT: refers to the overall economic activity generated by the project’s activities, which is distributed in the economy through hiring, purchases, taxes and other Value-Added Impact.
² VALUE-ADDED IMPACT: refers to the Revenue Impact minus the costs of the necessary goods and services of the overall project; equivalent to contributions to the Gross Domestic Product (GDP).