Greenfield Energy, a wholly-owned subsidiary of British-based TomCo Energy PLC, intends to develop and extract oil from tar sands deposits in Uintah County, Utah. The $150 million project is expected to create 214 jobs over the next ten years.
The company will inject carbon dioxide into the tar sand deposit, which will assist in the enhanced recovery and then be sequestered within the geologic formation. With the expansion, the company will deliver its products throughout the state of Utah and the western United States.
“County and surrounding areas are exceptional deposits with tremendous potential,” said John Potter, CEO of TomCo Energy. “The support we’ve received in advancing this project has been outstanding, and we look forward to creating a stabilizing economic boost for the Uintah Basin that will last for decades.”
The Utah Governor’s Office of Economic Opportunity awarded the company a temporary, marginal tax reduction for its expansion in rural Utah. The post-performance corporate incentive is part of the Legislature’s Rural Economic Development Tax Increment Financing (REDTIF) program.
Greenfield Energy may receive up to 50% of the additional state taxes it will pay over the 10-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Financing (REDTIF) tax credit. Each year Greenfield Energy meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“While our involvement in this expansion project was limited, we welcome Greenfield Energy and Heavy Sweet Oil to Utah’s energy industry,” said Theresa A. Foxley, president and CEO of EDCUtah. “These two companies are innovating the extraction process and moving the industry to more sustainable methods.”