Denbury Inc. will lease approximately 18,000 acres from a landowner near Donaldsonville, La., to be used for a future CO2 sequestration project, solidifying the company's carbon sequestration presence in the region, a press release announced on July 21.
The company estimates the site will have high CO2 injectivity and a total sequestration capacity of over 80 million metric tons of CO2 due to its thick laterally extensive, low dip reservoirs, with the first potential injection anticipated in 2025.
"We are excited to announce this agreement which expands our Gulf Coast CO2 storage portfolio," Denbury’s senior vice president of carbon solutions Nik Wood commented in the release. "We now have multiple sequestration sites in an area with tremendous existing and future potential CO2 emissions as we strive to provide an economic, low-risk solution for the storage of industrial carbon emissions."
The new sequestration site extends the company's potential volume of CO2 to sequester in the region to approximately 300 million metric tons, increasing Denbury's total sequestration site capacity to approximately 1.5 billion metric tons.
To confirm the company's geologic understanding of the site, it will drill a stratigraphic test well in one or more potential storage locations later in the year, also progressing Class VI permitting efforts required by the Environmental Protection Agency.
Located in Assumption and St. James Parishes, the site is less than five miles from the company's CO2 Green Pipeline.
Denbury estimates the existence of 50 million metric tons per year of CO2 emissions located within 30 miles of the site. Additionally, it is close to the Louisiana Industrial Corridor, site of one of the highest geographic concentrations of industrial CO2 emissions in the country and making it well-poised to minimize carbon emissions in the area.
"Our proven track record in providing highly reliable transportation and secure underground injection of CO2 emissions from our industrial partners, combined with our ideally positioned infrastructure, is unmatched in the industry and positions us well for continued success and growth in CCUS [carbon capture, sequestration and utilization],” Wood added.
Recommended Reading
Phillips 66’s Brouhaha with Activist Investor Elliott Gets Testy
2025-03-05 - Mark E. Lashier, Phillips 66 chairman and CEO, said Elliott Investment Management’s proposals have devolved into a “series of attacks” after the firm proposed seven candidates for the company’s board of directors.
CPP Wants to Invest Another $12.5B into Oil, Gas
2025-03-26 - The Canada Pension Plan’s CPP Investments is looking for more oil and gas stories—in addition to renewable and other energies.
Buying Time: Continuation Funds Easing Private Equity Exits
2025-01-31 - An emerging option to extend portfolio company deadlines is gaining momentum, eclipsing go-public strategies or M&A.
Pinnacle Midstream Execs Form Energy Spectrum-Backed Renegade
2025-02-03 - Renegade Infrastructure, led by Permian-centric Pinnacle Midstream developers Drew Ward and Jason Tanous, have received a capital commitment from Energy Spectrum Partners.
BKV Appoints Dilanka Seimon to New Chief Commercial Officer Position
2025-04-03 - BKV Corp. has created a new chief commercial officer position and placed industry veteran Dilanka Seimon in the role.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.