Denbury Announces 2023 CCUS Goals, Aqualung Carbon Capture Investment

Denbury Inc. announced its goals for its carbon capture, utilization and storage (CCUS) business for 2023, along with several new agreements and partnerships, the company announced in a press release on Feb. 23.

By the end of 2023, Denbury intends to:

• Invest in strategic partnerships and equity investments throughout the whole CCUS value chain;
• Acquire new sequestration sites for current and future CO₂ emissions;
• Create additional agreements with brownfield and greenfield projects to transport a total of 30 million metric tons per year of CO₂ emissions; and
• File Environmental Protection Agency Class VI permits for at least four of the company's sequestration sites and drill at least two stratigraphic test wells on those sites.

In addition to these goals, Denbury announced several new investments and partnerships, including a partnership with and equity investment in technology company Aqualung Carbon Capture. The company's technology enables the ability to capture at least 95% of CO₂ emissions through a passive CO₂ separation.

"Aqualung’s low-cost capture solution alongside Denbury’s integrated pipeline and storage network will accelerate the decarbonization efforts of our customers across the U.S.," Aqualung CEO Andrew Robbins commented in a separate press release.

Denbury's other CCUS technology investment is in ION Clean Energy, a company responsible for providing technology with the ability to capture over 95% of CO₂ emissions while significantly reducing operating and capital costs for large-scale, post combustion CO₂ emissions.

“We believe both Aqualung and ION are on the leading edge of reducing the cost of capture for a wide range of types and sizes of stationary CO₂ emissions facilities," Denbury senior vice president of CCUS technology Matt Dahan said. "Our investments in these emerging technologies will bring additional transport and sequestration opportunities to Denbury, and we look forward to working with both.”

Alongside the technology investments, Denbury has also executed agreements to work with: HIF Global on transport and utilize 2 million metric tons per year of CO₂ to a carbon-neutral facility in Matagorda County, Texas; and Monarch Energy Development to transport 0.4 million metric tons per year of industrial-source CO₂ to its Freeport and Beaumont, Texas-based eFuels production facilities to be used as feedstock.

"These agreements are focused on our strategy of rapidly capturing the CCUS market and expanding our CO₂ service offering," Denbury president and CEO Chris Kendall said. "The growth potential of our CCUS business is transformational, and our company is fully aligned and focused on delivering innovative carbon solutions for a sustainable future."