Independent energy company, Denbury has announced several new agreements related to its carbon capture, utilisation and storage (CCUS) business and provided its 2023 goals, which are intended to further the company’s leadership position in CCUS.
Chris Kendall, Denbury’s president and CEO says: ‘Today, we are announcing a number of new CCUS agreements…These agreements are focused on our strategy of rapidly capturing the CCUS market and expanding our CO2 service offering. The growth potential of our CCUS business is transformational, and our Company is fully aligned and focused on delivering innovative carbon solutions for a sustainable future.’
New CO2 transportation and/or storage agreements include:
- An agreement with HIF Global, a leading eFuels company that is targeting to build a 200 million gallon per year carbon-neutral eGasoline and eMethanol facility by 2027.
- An agreement with Monarch Energy Development LLC, a hydrogen and eFuels project developer. Under the agreement, Denbury will transport 0.4 Mmtpa of industrial-sourced CO2 to be used as a feedstock in the production process.
Initial dedicated CO2 storage site in Rocky Mountain region:
- In early 2023, the Company finalised a definitive agreement for the right to develop a dedicated CO2 sequestration site on nearly 15,000 acres in Campbell County, Wyoming, directly underneath the Company’s Greencore CO2 Pipeline. Denbury estimates potential CO2 sequestration capacity of the site (now named Corvus) to be 40 million metric tons.
Carbon capture technology investments expand CO2 services:
- An investment in ION Clean Energy, an industry leader in liquid solvent technologies that capture over 95% of CO2 emissions while significantly reducing operating and capital costs for large-scale, post combustion CO2 emissions.
- An investment in Aqualung Carbon Capture, a leader in membrane CO2 capture and separation technology.
Matt Dahan, Senior Vice President of CCUS Technology for Denbury says: ‘We believe both Aqualung and ION are on the leading edge of reducing the cost of capture for a wide range of types and sizes of stationary CO2 emissions facilities. Our investments in these emerging technologies will bring additional transport and sequestration opportunities to Denbury, and we look forward to working with both.’
2023 CCUS goals:
- Execute additional CO2 transportation and/or storage agreements from both brownfield and greenfield projects, so that by the end of 2023, Denbury’s cumulative agreements will cover CO2 emissions totaling 30 Mmtpa.
- Expand dedicated CO2 storage portfolio with the acquisition of additional sequestration sites in strategic locations near areas with high concentrations of current and future CO2 emissions.
- Enhance Denbury’s CCUS business with strategic partnerships and equity investments around the entire value chain of CCUS.
