Trace Carbon Solutions and Molpus Woodlands Group announced yesterday that the two companies have signed a servitude agreement for exclusive rights over the development of CO2 sequestration hub located in Calcasieu and Beauregard parishes, Louisiana.
The project will be named Evergreen Sequestration Hub and will cover over 20,000 acres. The carbon dioxide will be stored underground and managed by Trace, while Molpus will keep managing the forest.
Most carbon sequestration projects are being developed at empty oil and gas wells, as we as in suitable saline formation but here we see an approach that combines storage underground with a fully functioning ecosystem on top of it.
“Trace has the expertise and ability to offer superior services across the three main areas of the CCS value chain – capture, transportation, and sequestration. We recognize that large-scale, geologically superior sequestration sites are scarce in proximity to significant industrial carbon emissions. Thus, securing such a high-quality site for the Evergreen Hub, to permanently sequester CO2 emissions, is the first step towards building a full-cycle, integrated CCS business,” said Josh Weber, CEO of Trace.
“We welcome this partnership with Trace as another important and exciting milestone in the Molpus story,” said “We are not only relying on traditional methods to drive value in our timberland investments. Our teams are also focused on creatively seeking out new and innovative revenue opportunities for our clients, which we believe add value and promote positive environmental impacts,” added Terrell Winstead, Molpus President and Chief Executive Officer.
The Evergreen Hub is an example of the expanding carbon capture network in the region, with sites for permanent sequestration being chosen for their capacity and proximity to emitters in both Louisiana and Texas.
This particular hub has been reported to have more than 250 million metric tons of CO2 capacity and is located less than 50 miles from multiple emitters in the region, reducing the potential transportation costs.
Louisiana has taken center stage in the development of carbon capture in the last several years with multiple projects under way but has also seen opponents raising concerns.
Plans to store CO2 under Lake Maurepas in Livingston parish were delayed last year, after a moratorium was enacted, with local residents worried about potential leaks and contamination of drinking water.