Carbonvert Inc. and Castex Carbon Solutions said Sept. 19 they have executed an operating agreement with the state of Louisiana to store carbon on a 24,000-acre tract in state waters offshore Cameron Parish.
The project would become Louisiana’s first offshore CO2 storage hub.
The joint venture (JV) partners said the Cameron Parish CO2 Hub will have a storage capacity of more than 250 million metric tons of CO2, serving a region that has a high concentration of industrial emitters with more greenfield ammonia and LNG projects to come.
Carbon capture and storage (CCS) is among the options being pursued to wrangle emissions. And incentives in the Inflation Reduction Act of 2022—such as an increase to the 45Q tax credit, expanded construction deadlines and lower carbon capture thresholds—and state incentives are luring companies to incorporate CCS into their emission reduction strategies.
“Our CCS project will strengthen the local economy via funds from the newly adopted Louisiana Act No. 378, via the Federal Justice40 requirements, and by attracting new low-carbon focused businesses and related jobs,” Carbonvert CEO Alex Tiller said in a news release. “It will also provide a solution to clean up existing regional CO2 emissions, which is a win for everyone.”
Carbonvert, which announced in late August the sale of its 100% ownership interest in the Bayou Bend CCS project in Southeast Texas to Equinor, said the JV is also looking to repurpose existing pipeline infrastructure for the planned Cameron Parish hub.
“Our Cameron Parish project combines premier geologic storage attributes with existing midstream infrastructure to provide a range of tailored solutions to the adjacent industrial corridors in need of economically viable CO2 storage,” Aaron Killian, Castex executive vice president and CFO said in the release. “The significant environmental benefit and local economic impact of this project align with the mission and vision of the JV Partners and the industries we are collaborating with to address regional CO2 emissions.
2023-11-21 - As the oilfield service market faces headwinds from consolidation and a dwindling rig count, ProPetro CEO Sam Sledge sees Permian Basin demand picking up for next-generation equipment.
2023-11-28 - Downhole components are also increasingly coping with higher pressure and temperature conditions and handling more zones than ever.
2023-11-13 - Here’s a roundup of the latest E&P headlines, including a small but commercial discovery in the North Sea and new contract awards.
2023-10-30 - Here’s a roundup of the latest E&P headlines, including the gas export concept solution for Goliat and subsea equipment delivered for Shenzi North.
2023-09-25 - Hess estimates connecting these four Nabors rigs to the grid will reduce greenhouse-gas emissions from the company’s Bakken drilling operations by 50% and energy costs by 70%.