Firm to Lease 18,000 Acres in Louisiana for Carbon Sequestration
PLANO, Texas — Denbury Inc., an independent energy company active along the Gulf Coast and in the Rocky Mountain region, has signed a lease for roughly 18,000 acres near Donaldsonville, Louisiana, for use as a carbon sequestration site.
The site is located in Assumption and St. James Parishes, less than five miles from the company’s existing 320-mile Green Pipeline, which currently transports CO2 from an oil field south of Houston.
The area also happens to have one of the highest geographic concentrations of industrial CO2 emissions in the United States.
“We are excited to announce this agreement which expands our Gulf Coast CO2 storage portfolio,” said Nik Wood, Denbury’s senior vice president of Carbon Solutions, in a written statement.
“We now have multiple sequestration sites in an area with tremendous existing and future potential CO2 emissions as we strive to provide an economic, low-risk solution for the storage of industrial carbon emissions,” Wood said.
“Our proven track record in providing highly reliable transportation and secure underground injection of CO2 emissions from our industrial partners, combined with our ideally positioned infrastructure, is unmatched in the industry and positions us well for continued success and growth,” he added.
They believe the site’s geologic characteristics will ultimately allow for the sequestration of more than 80 million metric tons of CO2, with the first potential CO2 injection at the site occurring as early as 2025.
The addition of the new sequestration site will expand the potential volume of CO2 that the company can sequester near Donaldsonville, Louisiana, to approximately 300 million metric tons.
It would also expand Denbury’s total sequestration site capacity to about 1.5 billion metric tons, spread across facilities along the U.S. Gulf Coast in Alabama, Louisiana and Texas.