Air Products and Chemicals has installed a $400 million demonstration-scale carbon-capture system that can reduce carbon dioxide emissions at Valero's Port Arthur Refinery in Texas by about 1 million tons per year. The project was partly funded by the Department of Energy and will enter its second phase when Air Products installs additional equipment. The project's success proves the pilot technology "can be readily replicated and deployed into commercial practice within the industry," according to the Energy Department.

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