Spanish energy company Repsol has signed an agreement with Carbon-Zero, an affiliate of Cox Oil, with the aim of jointly assessing the potential for carbon capture and sequestration (CCS) along the US Gulf Coast.
Both parties will share technical knowledge and resources for the purposes of the agreement.
Repsol was the world’s first oil and gas corporation to set a net-zero emissions target by 2050. And in line with its climate strategy, the company is currently developing the first CCS project in Indonesia.
In turn, Carbon-Zero will be tasked with capturing, sequestering and transporting CO2 from industrial emitters to underground storage facilities in the Gulf of Mexico.
Initially, the emissions will be stored in Louisiana, where Cox Oil has operations just offshore.
The U.S. Gulf Coast has become a highly attractive location for carbon capture projects, due to its high concentration of industrial, petrochemical and energy facilities and the proximity of the Houston Ship Channel.
But in addition to carbon capture, Repsol is also planning on investing ~$2.8 billion in green hydrogen. To help channel the investment plan, the company has hired the services of the Boston Consulting Group.