CO2 Overview
Carbon dioxide (CO2), a colorless, odorless gas denser than air, is a key component of U.S. Energy Corp’s industrial gas operations on the Kevin Dome in Northwest Montana. Captured as a byproduct of our gas extraction, CO2 is processed and managed to support a variety of industrial applications while being securely sequestered for long-term storage.
Operations
Uses
CO2 plays a vital role in multiple industries due to its unique properties. It’s widely used in the food and beverage industry for carbonating drinks, in enhanced oil recovery (EOR) to increase oil extraction from reservoirs, in fire suppression systems for its ability to displace oxygen, and as a shielding gas in welding to protect molten metal. CO2 is also utilized in chemical production, greenhouses for plant growth, and dry ice manufacturing for cold chain logistics.
Demand
As of February 2025, demand for CO2 is growing, driven by its expanding use in industrial processes and carbon management initiatives. The oil and gas sector, particularly for EOR, remains a major consumer, while the food and beverage industry continues to rely on CO2 for carbonation. In North America, including the U.S., demand is bolstered by projects like ours, which combine production with sequestration, meeting both market needs and regulatory incentives.
Processing
At our Kevin Dome facility, CO2 is extracted alongside other industrial gases from wholly owned production wells and processed using proven, industry-tested technology. Our plant separates CO2 from helium, nitrogen, and other gases, purifying it for specific uses or preparing it for sequestration. The CO2 is then transported via pipelines to our nearby injection well, where it is securely stored underground, ensuring efficient management and compliance with operational standards.
Scarcity
CO2 is not inherently scarce, as it occurs naturally in the atmosphere and can be extracted from natural gas fields or industrial processes like fermentation and combustion. However, localized supply challenges can arise due to production capacity, transportation logistics, or seasonal demand spikes (e.g., in beverage production). Our strategic operations on the Kevin Dome help ensure a steady CO2 supply for both industrial use and sequestration, reducing potential supply risks.
Market Trends
The CO2 market is experiencing growth, particularly with the rise of carbon capture and storage (CCS) projects, supported by economic incentives like the 45Q tax credits in the U.S. this include managing high-purity requirements for specific applications, navigating regulatory standards for handling and storage, and optimizing transportation infrastructure. Our integrated approach—processing CO2 for market use while sequestering it—positions us to address these challenges effectively.
Why CO2 Matters to Us
CO2 is a cornerstone of our industrial gas portfolio, complementing our production of helium and nitrogen. By leveraging our Kevin Dome operations and advanced processing capabilities, we deliver CO2 for critical industrial applications while efficiently managing its storage, reinforcing our role as a reliable supplier in the industrial gas sector.