Talos Energy, Carbonvert and Chevron announced May 3rd that Chevron will be joining the Bayou Bend carbon capture and storage (CCS) offshore project in the Gulf of Mexico off the coast of Jefferson County, Texas.
Talos and Carbonvert announced in 2021 that they were the sole winning bidder partnership for the Texas carbon storage site. Through their Bayou Bend CCS joint venture, they were the winning bidders for the Texas General Land Office’s 2021 carbon storage lease.
Chevron now joins the carbon capture project to expand the venture with a cash contribution that gives it 50% equity interest in the joint venture. The company will also carry capital costs through the project’s final investment decision.
“Chevron brings significant expertise and experience to this project, and we are excited about what this partnership can deliver… We believe the addition of Chevron greatly enhances the execution of this hub-scale project and we hope this sends a clear signal to industrial partners in the Beaumont and Port Arthur region that we are focused on making Bayou Bend the premier CCS project in southeast Texas,” said Timothy S. Duncan, President and CEO of Talos.
Under the new ownership structure, Talos Energy remains the operator with a 25% stake, Carbonvert with 25%, and Chevron – 50%.
The Bayou Bend CCS project site includes over 40,000 gross acres that could potentially sequester 225 to 275 million metric tons of carbon dioxide (CO2) captured from industrial sources in the area.
The offshore sequestration lease provided to Bayou Bend CCS project is the first and only in the US dedicated to CO2 storage.