Talos Energy Inc. and Freeport LNG Development L.P. announced on Monday, November 15th that the companies executed a letter of intent to develop a carbon capture and storage project near Freeport, Texas.
The carbon capture installation will be adjacent to Freeport’s natural gas pretreatment facilities. The Freeport LNG’s owned geological sequestration site will be used, located less than half a mile from the point of capture with up to a 30-year injection term.
The close proximity of the injection site to the point of CO2 source benefits the project and limits the commercial barriers. It is planned to become operational by the end of 2024 but the plant is still subject to the execution of definitive agreements.
Talos Energy will be the project manager and operator of the CCS initiative and will be working together with its partner Storegga Geotechnologies Ltd. Storegga will contribute with its expertise in carbon management chains, specifically linking clusters of industrial CO2 sources. The engineering company is also the lead developer of the Acorn CCS project in the UK – one of the largest full-chain industrial CCS initiatives.
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Talos will utilize its expertise with conventional oil and gas geology, engineering and project delivery. The project will also help the company become a leader in the carbon capture and storage opportunities in the Gulf Coast.
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“We are excited to announce this project with Freeport LNG, a global LNG leader. The entrepreneurial collaboration of our teams allowed for the development of a unique, stand-alone carbon sequestration solution, which provides proof of concept to our broader CCS portfolio and is complementary to our larger hub-based project in Jefferson County,” said Talos President and Chief Executive Officer Timothy S. Duncan.
The collaboration between the companies will contribute to the decarbonization targets of the US and expand carbon capture opportunities that are vital for the rapid commercialization of the technology.