A joint venture (JV) of Carbonvert Inc. and the wholly owned subsidiary of Castex Energy Inc. Castex Carbon Solutions LLC is developing a carbon capture and storage (CCS) project on a 24,000-acre site in Louisiana waters off the coast of Cameron Parish under the JV’s operating agreement with the ‘State.
The Cameron Parish CO2 Hub will be “a leading choice for regional emitters seeking efficient and sustainable decarbonization solutions,” Carbonvert and Castex said in a joint press release. Castex will be the operator of the hub. Carbonvert and Castex formed a 50-50 JV in August 2022 to identify and advance CCS projects in Louisiana.
Based on technical and subsurface studies by Castex and the advantageous subsurface geology of the region, the Cameron Parish CO2 Hub has a total storage capacity of more than 250 million metric tons of carbon dioxide and will serve the high concentration of existing industrial emitters in the region and to planned greenfield projects. , in particular ammonia and liquefied natural gas (LNG) facilities. According to the release, the JV partners are also actively exploring opportunities to reuse existing pipeline infrastructure to support the project.
“We strongly believe that our offshore Cameron Parish project will help shape Louisiana’s low-carbon future,” said Alex Tiller, CEO of Carbonvert. “Our CCS project will strengthen the local economy through funds from the recently passed Louisiana Act No. 378, through the requirements of Federal Justice40, and by attracting new companies focused on low carbon emissions and related jobs. It will also provide a solution to clean up existing regional CO2 emissions, which is a win for everyone.”
“Castex and Carbonvert look forward to developing the first offshore CO2 storage facility in Louisiana,” said Aaron Killian, Castex Vice President and Chief Financial Officer. “Our Cameron Parish project combines state-of-the-art geological storage attributes with existing midstream infrastructure to provide a range of tailored solutions to adjacent industrial corridors in need of economically viable CO2 storage. The significant environmental benefit and impact local economy of this project aligns with the mission and vision of the JV partners and the industries we collaborate with to address regional CO2 emissions.”
CCS project in Corpus Christi
Earlier this month, the Texas General Land Office (GLO) awarded a partnership involving Carbonvert a contract for more than 140,000 gross acres of pore space owned by the Permanent School Fund (PSF) for the carbon dioxide storage located off the coast of Corpus Christi, Texas. The partnership is made up of Repsol as operator with a 40 percent stake, Carbonvert with a 40 percent stake, Mitsui E&P USA with a 10 percent stake and POSCO International with a 10 percent stake, according to a previous press release.
The project will be located near more than 35 million metric tons per year of existing industrial emissions within 100 miles of the storage sites and more than 20 million metric tons per year of projected emissions from greenfield projects planned for 2035 to create a globally competitive carbon storage hub. according to the statement.
The consortium will now enter a negotiation stage with the Texas GLO based on the terms of the partnership submitted with the original GLO application. Final terms are subject to approval by the Texas School Grounds Board, according to the release.
“Repsol is excited to lead and operate this project which will ultimately increase our strong presence in the country through our O&G. [oil and gas] Low Carbon operations and projects,” said David Ramos, director of Repsol’s Low Carbon Geological Solutions. “Corpus Christi is a strategic region for Repsol that pursues Low Carbon developments where the Port of Corpus Christi plays an essential role for the industry. This project will also make significant contributions internationally to help grow our global low-carbon portfolio.”
Tiller said the project instills “confidence in local industries to launch CO2 capture initiatives and improve resilience amid global carbon-related business requirements and growing customer demand for low-carbon products.” Tiller added: “It also attracts local investment from sectors such as blue hydrogen and sustainable aviation fuel refining.”
“Mitsui sees the Corpus Christi region as an emerging hub for low-carbon solutions and energy transition,” said Kazuhiko Gomi, president and CEO of Mitsui E&P USA.
Head of POSCO’s E&P Business Division, Jhoon Soo Jho, said: “With this project as a catalyst, POSCO International will accelerate the expansion of its green portfolio and continue to discover companies that fulfill our citizenship initiative corporate for both the global and local communities”.
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