US-based carbon solutions company Lapis Energy and CCUS management expert Denbury will collaborate in a joint venture carbon sequestration project that will create, implement, and operate a specialized facility at Lapis Energy’s St. Charles Parish site.
This location is home to a CO2 storage project sitting on 14,000 acres of terrain near New Orleans, Louisiana.
The new project will function under a newly formed company named Libra CO2 Storage Solutions LLC (“Libra”).
Dividing interest in a 50:50 ratio, the outlined structure for this project allocates the implementation phase of operations to Lapis Energy, which will happen through the Class VI permitting process, pre-FID steps, and early construction stages. Denbury is then set to undertake operatorship, managing and overseeing the construction in the course of injection installation.
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Both Lapis Energy and Denbury believe that Libra has the potential to hold at least 200 million metric tons of CO2, and it can be developed to become the regional emission-removing hub thanks to its location near active industrial centers.
Denbury plans to connect the new sequestration facility to its existing carbon pipeline network in southeast Louisiana with a 72-kilometer (45-mile) pipeline connection. In the initial development phases, as part of the mutual agreement, Denbury will also allocate volumes to the new site, provided the project receives Class VI injection approval and project sanction. The first injection is planned for 2027.
This new venture has already received positive reactions from administrative circles in the region. Governor John Bel Edwards commented: “Carbon capture and sequestration are important to Louisiana’s efforts to reduce carbon dioxide emissions while maintaining jobs and growing our manufacturing base,”. He goes on to add: “This effort is a clear demonstration of our ability to grow the Louisiana economy while lowering the carbon footprint of industry.”
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