Carbonvert, Castex Sign Deal for CO2 Storage Offshore Louisiana
The hub acreage is located in state waters of Cameron Parish.
Carbonvert and Castex Energy, through its wholly owned subsidiary Castex Carbon Solutions, have executed an operating agreement with the State of Louisiana to develop a 24,000-acre tract of land situated in State waters, offshore Cameron Parish, to permanently store carbon dioxide (CO2).
Based on Castex's technical and subsurface studies and the region’s subsurface geology, the Cameron Parish CO2 Hub has a total storage capacity of more than 250 million metric tons of CO2 and will service the region’s high concentration of existing industrial emitters and anticipated greenfield projects, notably ammonia and LNG facilities. The partners are also exploring opportunities to repurpose existing pipeline infrastructure to support the project.
In August 2022, the partners executed a 50/50 joint venture agreement to jointly identify and advance CCS projects in Louisiana. Castex will serve as the operator for the Cameron Parish CO2 hub.
“We firmly believe our Cameron Parish offshore project will help shape Louisiana’s low-carbon future,” said Carbonvert chief executive Alex Tiller. “Our CCS project will strengthen the local economy via funds from the newly adopted Louisiana Act No. 378, via the federal Justice40 requirements, and by attracting new low-carbon focused businesses and related jobs. It will also provide a solution to clean up existing regional CO2 emissions, which is a win for everyone.”
The Cameron Parish location is one of three primary CO2 storage areas being pursued by Castex Carbon. A central Louisiana location on private land in St. Mary Parish and a southeast location in Plaquemines Parish are also being examined as future storage hubs.
Last month, Carbovert sold its 25% stake in the Texas Bayou Bend CCS project to Equinor. The project is a joint venture between Chevron through its New Energies division, Talos Energy through its Low Carbon Solutions division, and Equinor.
Equinor acquired its 25% share by purchasing Texas Carbon 1, a subsidiary of Carbonvert. Chevron is the operator with a 50% interest, and Talos holds a 25% interest.