Commonwealth LNG and OnStream CO2 have signed a memorandum of understanding (MOU) to develop a carbon capture and storage (CCS) project in Louisiana, US.
OnStream CO2 is a joint venture (JV) between Carbonvert and Castex Carbon Solutions.
As part of the MOU, the parties will develop the CCS project at Commonwealth's 9.3 million tonnes per annum (mtpa) LNG facility, which is under development in Cameron.
OnStream CO2 will be responsible for the design, construction and operation of carbon dioxide (CO₂) capture equipment near the Commonwealth LNG site.
The captured CO₂ will be sent for permanent sequestration at the Cameron Parish CO₂ Hub.
Commonwealth will transport CO₂ produced from the LNG facility for a period of 20 years.
Commonwealth LNG founder and executive chairman Paul Varello said: "Adding carbon capture technology complements our comprehensive goal of achieving best-in-class environmental standards through measures that also include a focus on responsibly sourced gas and the installation of the highest-efficiency gas turbines."
Recently, the Carbonvert-Castex JV signed an operating agreement with the State of Louisiana to develop a 24,000-acre land tract offshore Cameron Parish to allow permanent storage of CO₂ in a hub.
Castex will operate the Cameron Parish CO2 Hub, which will have storage capacity for more than 250 million metric tonnes.
Castex executive-vice president and CFO Aaron Killian said: "We are pleased to work with Commonwealth LNG to achieve the shared vision of safely, permanently and economically reducing CO₂ emissions. OnStream's tailored CO₂ capture, transportation and storage solution will allow Commonwealth LNG to achieve key environmental initiatives while focusing on its core LNG business."
Carbonvert Founder and CEO Alex Tiller said: "Commonwealth's commitment to our storage site is a great first step and instills confidence in the Lake Charles industrial corridor to launch CO₂ capture initiatives and enhance resilience amidst carbon-related global trade requirements and customers' increasing demand for low-carbon products."
In August 2023, Commonwealth LNG signed a services agreement with Baker Hughes for its Cameron Parish, Louisiana-based LNG facility.
