Denbury (NYSE: DEN) has announced it expects its carbon capture, utilization and storage (CCUS) venture to generate between $650 to $900 million by 2030 with the break even point coming around 2026-27. According to an investor presentation focused on its developing CCUS business, this will require an amount in the $1.6-2 billion range of CAPEX by 2030.
The company is positioning itself to take advantage of a growing industry when it comes to carbon capture with oil companies like Chevron and Occidental, as well as newcomers like Carbon America and Net Power all announcing different initiatives even before the Inflation Reduction Act’s boost.
The last several weeks have seen the company add two carbon capture projects to its portfolio in search of what it calls a network effect when it comes to capture, transport and storage of CO2.
Another agreement with in Louisiana was also announced. The site is almost twice the size of the Mississippi one at 31,000 acres. This particular location is already in close proximity to Denbury’s Green Pipeline and is another stepping stone in the carbon capture network that Denbury is working on.
These developments come after rumors surfacing in early October, 2022 that oil giant Exxon Mobil (NYSE: XOM) was mulling over a takeover bid for Denbury. The rumors have died out since then but they have fueled speculation of a takeover at a later point by Exxon or possibly another company.