Denbury Inc. (NYSE: DEN) (“Denbury”) and Weyerhaeuser Company
(NYSE: WY) (“Weyerhaeuser”) today announced an agreement for the
evaluation and potential development of a CO2 sequestration site in
Mississippi. The lease agreement provides Denbury with the
exclusive right to develop and operate approximately 16,000 acres
of subsurface pore space owned by Weyerhaeuser in Simpson and
Copiah Counties in Mississippi. The site is located directly
adjacent to Denbury’s NEJD Pipeline in Mississippi, approximately
35 miles south of the company’s Jackson Dome field. Denbury is
planning to utilize the site to permanently sequester industrial
CO2 in secure underground geologic formations. Weyerhaeuser will
continue to manage the timberland acreage as a sustainable working
forest.
Denbury estimates the site will have total sequestration
capacity of approximately 275 million metric tons of CO2. The site
represents Denbury’s first planned CO2 sequestration location in
Mississippi, expanding its storage portfolio that already includes
sites along the U.S. Gulf Coast in Alabama, Louisiana, and Texas.
Denbury intends to drill a stratigraphic test well on the site in
2023 to support the Company’s geologic interpretation and progress
Class VI permitting with the EPA.
Nik Wood, Denbury’s Senior Vice President, CCUS, commented, “Our
agreement with Weyerhaeuser is a significant step in building out
the Gulf Coast’s leading CO2 transportation and sequestration
network. The location of this Mississippi site, directly adjacent
to our existing pipeline network, provides for a very efficient
development and increases the overall flexibility and capacity of
our operations. We now have the pathways to move industrial-sourced
CO2 from the Mississippi River Industrial corridor north on our
NEJD pipeline, west on our Green Pipeline, and east to our
previously announced planned storage in southeast Louisiana. We
look forward to working with Weyerhaeuser as we develop the safest,
most reliable and efficient CO2 transportation and storage system
in the Gulf Coast.”
The lease agreement demonstrates Weyerhaeuser’s continued
progress on its previously announced plan to grow its Natural
Climate Solutions business, including through carbon capture and
sequestration (CCS), forest carbon offsets, renewable energy
development, mitigation solutions and conservation. Weyerhaeuser
has identified multiple locations for potential sequestration
projects across a portion of its 7-million-acre footprint in the
U.S. South using proprietary geological data covering its
lands.
Russell Hagen, Weyerhaeuser’s Senior Vice President and Chief
Development Officer, commented, “This agreement represents another
important milestone in the growth of our CCS business, and it
supports our broader commitment to sustainability and providing
natural climate solutions across our land base. We are excited to
partner on this project with Denbury and unlock the option value
created when combining our uniquely positioned acreage and
subsurface ownership with high-quality developers of CCS projects
in the Gulf South.”
ABOUT DENBURY
Denbury is an independent energy company with operations and
assets focused on Carbon Capture, Use and Storage (CCUS) and
Enhanced Oil Recovery (EOR) in the Gulf Coast and Rocky Mountain
regions. For over two decades, the Company has maintained a unique
strategic focus on utilizing CO2 in its EOR operations and since
2012 has also been active in CCUS through the injection of captured
industrial-sourced CO2. The Company currently injects over four
million tons of captured industrial-sourced CO2 annually, with an
objective to fully offset its Scope 1, 2, and 3 CO2 emissions by
2030, primarily through increasing the amount of captured
industrial-sourced CO2 used in its operations. For more information
about Denbury, visit www.denbury.com.
The Denbury Carbon Solutions team was formed in January 2020 to
advance Denbury’s leadership in the anticipated high-growth CCUS
industry, leveraging Denbury’s unique capabilities and assets that
were developed over the last 20-plus years through its focus on CO2
EOR.
Follow Denbury on Twitter and LinkedIn.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners
of timberlands, began operations in 1900. We own or control
approximately 11 million acres of timberlands in the U.S. and
manage additional timberlands under long-term licenses in Canada.
We manage these timberlands on a sustainable basis in compliance
with internationally recognized forestry standards. We are also one
of the largest manufacturers of wood products in North America. Our
company is a real estate investment trust. In 2021, we generated
$10.2 billion in net sales and employed approximately 9,200 people
who serve customers worldwide. Our common stock trades on the New
York Stock Exchange under the symbol WY. Learn more at
www.weyerhaeuser.com
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements as to the
timing of the first stratigraphic test well and as to the estimated
potential pore space for permanent CO2 sequestration that involve
risks and uncertainties, including the timing and availability of
CO2 to be sequestered, Denbury’s successful preparation and testing
of the site for permanent CO2 sequestration and obtaining Class VI
permits required for permanent CO2 sequestration. These statements
are based on engineering, geological, financial and operating
assumptions that Denbury believes are reasonable based on currently
available information; however, their achievement are subject to a
wide range of business risks, and there is no assurance that these
goals and projections can or will be met. Actual results may vary
materially. In addition, any forward-looking statements represent
Denbury’s estimates only as of today and should not be relied upon
as representing its estimates as of any future date. Denbury
assumes no obligation to update these forward-looking
statements.
This press release also contains forward-looking statements
concerning Weyerhaeuser Company and its subsidiaries (“Weyerhaeuser”) including, but not limited to, with
respect to Weyerhaeuser’s plans to grow its natural climate
solutions business and the potential for multiple carbon
sequestration projects on locations throughout its land ownership.
Forward-looking statements can be identified by the fact that they
do not relate strictly to historical or current facts. These
forward-looking statements are based on Weyerhaeuser’s current
expectations and assumptions and are not guarantees of future
events or performance. The realization of Weyerhaeuser’s
expectations and the accuracy of its assumptions are subject to a
number of risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. These risks and uncertainties include, but are not
limited to, those described in Weyerhaeuser Company’s 2021 Annual
Report on Form 10-K, as well as those set forth from time to time
in its other public statements, reports, registration statements,
prospectuses, information statements and other filings with the
SEC. It is not possible to predict or identify all risks and
uncertainties that might affect the accuracy of Weyerhaeuser’s
forward-looking statements and, consequently, its descriptions of
such risks and uncertainties should not be considered exhaustive.
There is no guarantee that any of the events anticipated by these
forward-looking statements will occur, and if any of the events do
occur, there is no guarantee what effect they will have on
Weyerhaeuser’s business, results of operations, cash flows,
financial condition and future prospects. Forward-looking
statements speak only as of the date they are made, and
Weyerhaeuser undertakes no obligation to publicly update or revise
any forward-looking statements, whether because of new information,
future events, or otherwise. It is not possible to predict or
identify all risks and uncertainties that might affect the accuracy
of Weyerhaeuser’s forward-looking statements and, consequently, its
descriptions of such risks and uncertainties should not be
considered exhaustive. There is no guarantee that any of the events
anticipated by these forward-looking statements will occur, and if
any of the events do occur, there is no guarantee what effect they
will have on Weyerhaeuser’s business, results of operations, cash
flows, financial condition and future prospects. Forward-looking
statements speak only as of the date they are made, and
Weyerhaeuser undertakes no obligation to publicly update or revise
any forward-looking statements, whether because of new information,
future events, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20221212005682/en/
DENBURY CONTACTS: Brad Whitmarsh, 972.673.2020,
brad.whitmarsh@denbury.com Beth Bierhaus, 972.673.2554,
beth.bierhaus@denbury.com
WEYERHAEUSER CONTACTS: Media - Nancy Thompson,
919.861.0342, nancy.thompson@weyerhaeuser.com Investor Relations -
Andy Taylor, 206.539.3907, andy.taylor@weyerhaeuser.com
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