Carbon capture, utilization and storage (CCUS) has a monumental task ahead, but experts believe it is possible for the technology to be a major contributor to emissions reductions efforts—with help from regulators.

Speaking during Hart Energy’s recently held Energy Transition Capital Conference, top executives from Plano, Texas-based Denbury Inc. shared their knowledge on the topic and addressed challenges and opportunities. The oil-focused producer, which has operations in the Rocky Mountains and Gulf Coast, is known for its in CO2 EOR technical expertise and extensive network of CO2 pipelines.

Denbury CEO Chris Kendall took a look at the math, for starters, involving CCUS’ role in global ambitions to reach net-zero by 2050.

“Total carbon emissions in the world today [is] around 34 billion tons annually. So big number. The net zero scenario that was developed showed that just CCUS as a contributor to that reduction needs to account for nearly 8 billion tons,” Kendall explained, noting the other contributors are wind and solar.

However, the amount being captured today is only around 40 million tons per year, he said.

“We need to go from 40 million to 8 billion, and I think … the great geology that we have right here in the Gulf Coast, in particular, right underneath us will make the U.S. a center for capture going forward.”

Kendall was joined by Nik Wood, senior vice president of CCUS for Denbury, during a session moderated by White & Case partner Taylor Pullins. Hear how this longtime transporter and user of CO2 in EOR describes its new CCUS opportunity and plans.

Jump to a topic:

  • Keys to success for building a CCUS business (3:40)
  • How network of pipelines adds to efficiency (5:40)
  • Network expansion opportunities (7:15)
  • Paving the way to permanent sequestration (8:47)
  • Carbon negative oil (10:40)
  • Deal structures (14:50)
  • Permanent sequestration (14:55)
  • Needed regulatory changes (17:20)
  • 45Q timing and landscape changes (20:50)
  • Opportunity and challenges with scaling CCUS (22:35)