Denbury has signed three new lease agreements with large private landowners in Louisiana, securing additional exclusive rights to develop significant carbon dioxide (CO2) sequestration projects along the state’s industrial corridor.
Two of the agreements cover a contiguous area of about 84,000 acres approximately 30 miles southeast of New Orleans. Denbury estimates this site will provide more than 500 million metric tons of potential CO2 sequestration capacity.
The company plans initially to connect emissions from nearby industrial facilities to this site, with additional plans for a pipeline connection to the its Green Pipeline in Donaldsonville, Louisiana. Denbury said the planned pipeline route is within 10 miles of multiple industrial sources that collectively emit more than 20 million metric tons of CO2 annually.
Denbury also executed a new pore space agreement adjacent to the acreage leased near Donaldsonville. This new agreement expands the potential volume of CO2 that the company estimates can be sequestered at the combined site to more than 220 million metric tons, a near 50% expansion to the original site. The combined 11,000-acre site is less than 10 miles from Denbury’s existing CO2 pipeline infrastructure, and there are around 30 million metric tons of CO2 currently emitted annually within a 20-mile radius of the site.
Denbury now has exclusive rights to develop pore space storage with an estimated capacity of more than 1.4 billion metric tons of CO2. More than 1,300 miles of CO2 pipelines move in excess of 14 million metric tons of CO2 annually.
