Joint Venture Finalized for Bayou Bend CCS Project

Chevron, Talos, and Carbonvert have finished the documentation and closed the joint venture for the carbon capture and storage project on the Gulf of Mexico coast.

Evening surf
Source: psasser/Getty Images

Chevron has jumped into the shallow water of the Bayou Bend CCS project. The company announced it has executed the definitive documentation and closed the expanded joint venture with partners Talos and Carbonvert. Chevron will take 50% of the carbon capture and storage (CCS) project. Talos and Carbonvert, the two companies who started the project, will hold on to 25% each, and Talos will continue as operator.

The project is planned for the shallow waters of the Gulf of Mexico near Beaumont and Port Arthur, Texas. The area is increasingly drawing attention as a site for carbon storage because of its geology and proximity to major petroleum infrastructure. The companies have said they expect to inject and store between 225 million and 275 million mt of carbon dioxide there.

“This venture is an example of the potential that partnering can have in moving large-scale lower-carbon projects forward,” said Chris Powers, vice president of carbon capture, utilization, and storage for Chevron New Energies. “Talos and Carbonvert have worked to rapidly advance this project, and as a priority project for Chevron in a key industrial area, we are excited to contribute our experience and capability to develop the leading offshore carbon sequestration hub for the region.”

The three companies also have established an area of mutual interest over the 231,000-acre Jefferson County, Texas, offshore region presented in the state’s original request for proposal, setting them up for expansion.