Today, the Utah Governor’s Office of Economic Opportunity (Go Utah) awarded Greenfield Energy, LLC 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 plans to provide up to 214 new high-paying jobs and invest $150 million in rural Utah during the next 10 years.
“We are excited to see Greenfield Energy and Heavy Sweet Oil growing in the Uintah Basin,” said Dan Hemmert, the Office of Economic Opportunity’s Executive Director. “Energy independence has never been more important to the nation, and we’re proud to support this joint venture which will provide significant investment into rural Utah. We are also pleased to see both companies’ innovative processes, aggressive carbon sequestration, and efforts to be carbon neutral — from well to tailpipe.”
Greenfield Energy (a wholly-owned subsidiary of TomCo Energy PLC) intends to develop and extract oil from tar sands deposits in Uintah County and other surrounding counties in the eastern parts of Utah. As part of its operation, Greenfield Energy 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 this expansion, the company will deliver its products throughout the state of Utah and the western United States.
“Each oil and gas deposit is unique, and the oil sands in Uintah 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.”
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 (U.C.A. 63N-2-106(2)). 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.”
Tax Credit Projections
Timeline: 10 years
Capital investment: $150 million
New state tax revenue: $152,665,602
REDTIF new state tax credit: 50%
Learn more about the state’s post-performance REDTIF program here.