Denbury – the oil and gas company that is mainly focused on carbon capture for enhanced oil recovery is making progress with carbon capture sequestrations projects. It announced on March 16th three new lease agreements with large private landowners in Louisiana to develop significant carbon capture and storage projects.
The initiatives will sequester CO2 in high-quality, high-capacity reservoirs underlying deep sealing formations along the state’s industrial corridor. Two of the lease agreements comprise 84,000 acres thirty miles southeast of New Orleans, Louisiana. That area has the potential to provide more than 500 million metric tons of CO2 sequestration.
The idea is to connect emissions from nearby industrial facilities to this site. It also has future plans for a pipeline connection to the Company’s Green Pipeline in Donaldsonville, Louisiana. There are multiple industrial sources within 10 miles from the sequestration site that collectively emit more than 20 million metric tons of CO2 annually.
The project aims to become a large-scale solution for the transportation and permanent sequestration of captured industrial emissions along the Louisiana industrial corridor between Donaldsonville and lower Plaquemines Parish.
The company also announced a third agreement about a new pore space that is an expansion of its recent deal for sequestration project near Donaldsonville, Louisiana. Earlier this year, the company signed a lease agreement with a large landowner for a pore space position just east of Donaldsonville, Louisiana.
The current lease is a 50% expansion to the original storage site that brings it to more than 220 million metric tons storage capacity. The site is 11,000 acres and is located less than 10 miles from Denbury’s existing CO2 pipeline infrastructure. There are also approximately 30 million metric tons of CO2 currently emitted annually within a 20-mile radius of the site.
The company now has exclusive rights to develop pore space storage with an estimated capacity of more than 1.4 billion metric tons of CO2 in total. Denbury has over 20 years of carbon capture experience – transporting and injecting CO2 underground for enhanced oil recovery and more than 1,300 miles of CO2 pipelines. That expertise could help it to shift towards decarbonization and lead the carbon capture industry towards permanent CO2 sequestration, excluding utilization for oil recovery purposes.