Carbon capture is a process through which carbon dioxide generated from industrial activity is stored underground. It is key to the climate strategy of President Joe Biden's administration, which has pledged to halve the greenhouse gas emissions by 2030.
Dozens of U.S. carbon capture projects have been proposed to take advantage of the Federal 45Q tax credits provided under the Inflation Reduction Act.
Other nations have also put their weight behind the novel technology that still remains expensive and unproven at scale.
Delek said the project aims to capture 145,000 metric tons of carbon dioxide per year and reduce other health-harming pollutants.
The U.S. refiner had previously invested in two carbon capture start-ups. It also acquired 3Bear, which has a sequestration well permit in the U.S.
