Texas Requests Proposals For 1.1 Million Acres Of Offshore Carbon Sequestration Leases

Texas Opens Bids For 1.1 Million Acres Of Offshore Carbon Sequestration - Carbon Herald
Image: Texas General Land Office and School Land Board Request for Proposals NO. 24-SLB-1-LP

Texas plans to put 1.13 million acres of state waters and bays along the Gulf of Mexico up for bid, targeting parties interested in carbon capture and sequestration (CCS) projects.

A total of thirteen zones will be opened for bidding, encompassing waters near Brownsville, Freeport, and Galveston, along with areas around Matagorda, Calhoun, and Aransas counties, as outlined in a request for proposals from the Texas General Land Office and the School Land Board.

Image: Texas General Land Office and School Land Board Request for Proposals NO. 24-SLB-1-LP

The announcement comes as confirmation of CCUS’ development in Texas which is seeing the expansion of its transportation network and increasing carbon sequestration capacity.

A growing number of carbon capture projects have been announced over the last several years. In April 2024, Kinder Morgan agreed to lease the 10,800 acres from TGS Cedar Port Partners, a rail service operator that oversees a 15,000-acre industrial park near the Houston Ship channel. 

Back in September 2023, The Texas General Land Office (GLO) awarded a Repsol-led partnership a contract for over 140,000 gross acres of pore space owned by the Permanent School Fund (PSF) for CO2 storage located offshore of Corpus Christi, Texas.

Exxon and Enlink are also working in various Gulf Coast areas, particularly those with high levels of industrial CO2 emissions, such as the Houston Ship Channel, the Mississippi River Corridor, Lake Charles and southwest Louisiana, and Port Arthur and Beaumont, Texas.

This RFP also highlights the contrast in development between land-based carbon storage and its marine equivalent. With Class VI well approvals moving at a slower pace, projects in interior states like Colorado, Iowa and Wyoming aren’t seeing the same pace of development like Texas and Louisiana.

You can find the RFP and lease details on this page.

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