Denbury expands CO2 sequestration network along US Gulf Coast
Denbury Inc. is expanding is carbon capture sequestration (CCS) business along the US Gulf Coast with separate agreements.
The operator signed a deal with a landowner in southwest Louisiana for the future development and operation of a dedicated CO2 sequestration site. The 31,000-acre position is in Allen, Beauregard, and Vernon Parishes, about 25 miles north of Denbury’s Green Pipeline. Denbury estimates potential to store up to 250 million metric tons of CO2 in the site, with first injection planned as early as 2026.
The location of the site provides nearby storage potential for the heavy industrial areas of Beaumont and Port Arthur, Texas, and Lake Charles, Louisiana.
In a separate agreement, Denbury and Weyerhaeuser Co. agreed to evaluate and potentially develop a CO2 sequestration site in Mississippi. The lease agreement provides Denbury with the exclusive right to develop and operate about 16,000 acres of subsurface pore space owned by Weyerhaeuser in Simpson and Copiah Counties in Mississippi. The site is adjacent to Denbury’s NEJD Pipeline in Mississippi, about 35 miles south of the company’s Jackson Dome field. Denbury plans utilize the site to permanently sequester industrial CO2 in secure underground geologic formations. Weyerhaeuser will continue to manage the timberland acreage as a sustainable working forest.
Denbury estimates the site will have total sequestration capacity of about 275 million metric tons of CO2. Denbury intends to drill a stratigraphic test well on the site in 2023 to support the company’s geologic interpretation and progress Class VI permitting with the Environmental Protection Agency (EPA).
The site would be Denbury’s first planned CO2 sequestration location in Mississippi, expanding its storage portfolio that includes sites in Alabama, Louisiana, and Texas.
