Denbury Expands Carbon Solutions Business with New Louisiana Sequestration Agreement

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.