Denbury Carbon Solutions and a subsidiary of Natural Resource Partners (NRP) LP executed a CO2 sequestration agreement for the evaluation and potential development of a permanent CO2 sequestration site located on Alabama’s Gulf Coast.
The agreement provides Denbury with the exclusive rights to develop a CO2 sequestration site on about 75,000 acres of pore space controlled by NRP in Baldwin County, near Mobile, Alabama. Denbury estimates the total CO2 storage potential of this site to be over 300 million metric tons. Depending on the pace and scale of regional carbon capture, use, and storage (CCUS) development, Denbury may consider expanding its existing Gulf Coast CO2 pipeline network to connect to this site.
“We are excited to announce this agreement with NRP, which further expands Denbury’s industry-leading Gulf Coast CO2 infrastructure position in a region with high volumes of existing industrial CO2 emissions,” said Chris Kendall, president and chief executive at Denbury. “In addition, the combination of this site’s significant expected CO2 storage capacity and its proximity to deepwater ports should enhance the region’s appeal for newbuild industrial development with carbon capture.”
NRP said it expected this project to be the first of what will potentially be numerous carbon sequestration projects conducted on the approximately 3.5 million acres where it owns the rights to sequester CO2 across the US.
Denbury plans to complete a technical evaluation of the site to ensure its suitability for CO2 sequestration, while simultaneously pursuing agreements to transport and store CO2 emissions from nearby existing or planned industrial facilities. Denbury estimates that the site could be ready to receive CO2 injection by 2026.
The Denbury Carbon Solutions team was formed in January 2020, leveraging its capabilities and assets that were developed over the past 20-plus years through its focus on CO2 enhanced oil recovery.
Denbury currently injects more than 3 mtpa of captured industrial-sourced CO2, and its objective is to fully offset its Scope 1, 2, and 3 CO2 emissions within this decade, primarily through increasing the amount of captured industrial-sourced CO2 used in its operations.
