Talos Energy Inc. (NYSE: TALO) have announced that together with partners Carbonvert Inc., have won a bid for developing a physical site for carbon sequestration and storage. The location has been made available by the Texas General Land Office’s Jefferson Country, near Beaumont and Port Arthur.
The bid was the only one accepted one among a dozen others and will cover an area of 40,000 acres in the Gulf of Mexico. A key point for the bid’s success was that the site is completely covered by Talos’ existing seismic database. It’s also in proximity to a large number of carbon emitters along both the Louisiana and Texas coasts.
In a statement announcing the new project, Talos say that rock and fluid properties of the locations’ saline resrvoirs can seuqester between 225 and 275 million metric tons of CO2 from the industrial emitters located nearby.
Talos Energy CEO Timothy S. Duncan said: “This is an exciting announcement for Talos and Carbonvert as we advance our carbon capture initiative from concept towards our first tangible project site. With this award, we are positioned to become among the first independent U.S. energy companies with an identified site dedicated to carbon sequestration, further advancing our leadership among peers in this rapidly-developing space. The Project Site possesses favorable geological characteristics and close commercial proximity to support an attractive project in the future. This is the first of several steps in our strategy to build multiple carbon capture and storage sites along the United States Gulf Coast where we can use Talos’s core competencies to operate these important projects.”
Duncan also commented on what some see as an example of how an energy company can potentially reinvent itself: “We want to redefine the role of traditional oil and gas companies, as we recognize the need to responsibly develop and produce hydrocarbons as well as lowering overall emissions in the communities where we work and live.”
The proposal from Talos came before their exclusive joint venture with UK company Storegga came into effect. That joint venture will target more carbon capture and sequestration projects along the U.S. Gulf Coast.
Storegga are most popular from their Acorn project which will sequester CO2 from a hydrogen production facility from natural gas in a depleted North Sea reservoir.
Read more about Storegga: