Banpu Public Company Limited has achieved final investment decision (FID) on two U.S.-based carbon capture, utilization, and storage (CCUS) projects, and has thus become the first Thai energy provider to do so, according to a company statement published last week.
The first CCUS project, referred to as Barnett Zero, was initiated in 2022, with FID reached in the same year. Drilling started in July 2022, and the first injection of carbon dioxide (CO2) is scheduled by December 2023.
The project, which will separate CO2 from the majority of Banpu’s natural gas production gathered using midstream systems by EnLink (NYSE: ENLC), is expected to be one of the first permanent commercial CO2 disposal and sequestration sites in the U.S.
The second project, called Cotton Cove, reached internal FID in October 2022, and CO2 sequestration activities are planned to start by the end of 2024, subject to all required permits.
The project will separate CO2 generated as a byproduct of Banpu’s natural gas production in the Barnett shale in Texas, utilizing the company’s midstream assets.
Relevant: Texas To Become The Largest Contributor Of Carbon Removal, Study Shows
The total investment will be in the range of $29-$34 million for Barnett Zero and $14-$24 million for Cotton Cove. The average sequestration rate is estimated at up to 210,000 and 80,000 metric tons of CO2 equivalent (CO2e) per year, respectively.
Additionally, Banpu announced a recent carbon sequestration agreement with the State of Louisiana, under which it will develop its third CCUS project in the U.S. The High West project will separate CO2 from local emissions sources.
Banpu’s CEO, Somruedee Chaimongkol, called these projects “milestones” in the company’s decarbonizing mission, adding that they may create the opportunity to generate income from selling carbon credits in the future.
According to Thiti Mekavichai, Head of Oil and Gas Business, Banpu’s goal is for its natural gas business to become carbon neutral in terms of scope 1 and 2 upstream emissions around 2025 and in terms of scope 3 upstream emissions — in the 2030s.
“We are consistently on the lookout for more potential CCUS projects and opportunities and are currently reviewing a CCUS potential project pipeline of more than 30 million metric tons of CO2e per year,” he said.
Read more: BKV And NuQuest Energy Announce Carbon Sequestration Agreement With The State Of Louisiana
