Energy company Denbury has formed a joint venture (JV) with Lapis Energy to develop a carbon capture and storage (CCS) project in Louisiana, US.
Denbury and Lapis Energy will each own a 50% stake in the JV, called Libra CO₂ Storage Solutions.
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By GlobalDataThe CCS project will be developed at Lapis Energy’s St Charles Parish-based 14,000-acre carbon storage site.
As per the agreement, Lapis Energy will be responsible for the project’s permitting process, pre-FID [final investment decision] phase and initial construction.
Meanwhile, when the CO₂ injection starts, Denbury would assume the operatorship and later construction management of the project.
According to the companies, the site can store at least 200 million tonnes (mt) of CO₂ and, given its closeness to major industrial centres, could function as a regional hub for decarbonisation.
Lapis Energy CEO Reg Manhas said: “This venture represents the next step in Lapis’ business development plan and, along with our El Dorado CCS project with LSB Industries, provides a platform to accelerate our North American growth and build an industry-leading CCS portfolio, with a number of other opportunities currently under evaluation.”
Separately, Denbury signed a definitive agreement with Soterra to develop a CCS site on nearly 8,500 acres in St Helena Parish, Louisiana.
Called Virgo, the site’s CCS capacity, according to Denbury, is estimated to be at least 100mt.
Denbury senior vice-president of carbon capture, utilisation and storage Nik Wood said: “Our joint venture with Lapis provides access to an ideal site that is extremely well positioned in a high-emissions area along the Mississippi River between Donaldsonville and New Orleans, and we are excited to work with the Lapis team.
“Our Virgo site is also an ideal CO₂ sequestration site, as it is located at a very short distance from our existing infrastructure. Adding both of these sites furthers our strategy to provide the industry’s largest, most reliable and efficient CO₂ transportation and storage network.”
