By Carolyn Davis
Natural Gas Intelligence, December 20, 2022
Denbury Inc., long a leader in carbon sequestration, has captured agreements to potentially develop projects in Louisiana and Mississippi.
One agreement is with a landowner in southwestern Louisiana, which includes 31,000 acres in Allen, Beauregard and Vernon parishes. The site is about 25 miles north of Denbury’s Green Pipeline, which transports CO2 for carbon capture utilization and storage (CCUS).
“Denbury has unparalleled experience and CO2 pipeline infrastructure in the U.S. Gulf Coast for the transportation and storage of CO2,” said Denbury’s Nik Wood, senior vice president of CCUS.
The company long used CO2 for its enhanced oil recovery (EOR) operations.
Denbury estimated it would have the potential to store up to 250 million metric tons (mmt) of CO2 at the Louisiana site, with the first injection as early as 2026.
The Louisiana location would offer CO2 storage potential for the heavy industrial areas in Lake Charles, LA, and along the Texas coast in Beaumont and Port Arthur.
“In close proximity to the dedicated CO2 sequestration site is more than 60 million metric tons/year of existing emissions,” the company noted.
In another transaction with Weyerhaeuser Co., Denbury has the right to develop a CCUS site in Mississippi. The 16,000 acres of subsurface pore space owned by Weyerhaeuser is in Simpson and Copiah counties.
The site is adjacent to Denbury’s Northeast Jackson Dome (NEJD) Pipeline, south of the Jackson Dome CO2 field, which also has been used for EOR. The 183-mile NEJD system runs south from Jackson Dome to near Donaldsonville, LA, where it connects into the Green Pipeline.
Denbury plans to use the Mississippi site to permanently sequester industrial CO2 in underground geologic formations. Weyerhaeuser would continue to manage the timberland acreage as a sustainable working forest.
The Mississippi site would have total sequestration capacity of about 275 mmt of CO2.
The site would be Denbury’s first planned CO2 sequestration location in Mississippi. The Plano, TX-based independent plans to drill a stratigraphic test well next year to support geologic interpretation to begin injection well permitting with the U.S. Environmental Protection Agency.
“Our agreement with Weyerhaeuser is a significant step in building out the Gulf Coast’s leading CO2 transportation and sequestration network,” Wood said. “We now have the pathways to move industrial-sourced CO2 from the Mississippi River Industrial corridor north on our NEJD pipeline, west on our Green Pipeline and east to our previously announced planned storage in Southeast Louisiana.”
Weyerhaeuser’s Russell Hagen, chief development officer, said the agreement “represents another important milestone in the growth of our CCUS business, and it supports our broader commitment to sustainability and providing natural climate solutions across our land base.”
Originally Posted by Natural Gas Intelligence