Denbury Expands CO2 Sequestration Portfolio With Additional Site in Louisiana’s Industrial Corridor
July 21 2022 - 4:40PM
Business Wire
High-quality storage reservoir less than 5
miles from Company’s CO2 infrastructure
Denbury Inc. (NYSE: DEN) (“Denbury”) today announced that it has
signed a definitive agreement with a landowner near Donaldsonville,
Louisiana, to lease approximately 18,000 acres for future CO2
sequestration. The site is located in Assumption and St. James
Parishes, less than five miles from the Company’s existing CO2
Green Pipeline and in close proximity to the Louisiana Industrial
Corridor, one of the highest geographic concentrations of
industrial CO2 emissions in the United States. Denbury estimates
more than 50 million metric tons per year of existing stationary
CO2 emissions are located within 30 miles of the site.
With excellent geologic characteristics, including thick
laterally extensive, low dip reservoirs, the Company anticipates
the site will have high CO2 injectivity and total sequestration
capacity of more than 80 million metric tons of CO2. Denbury
estimates first potential CO2 injection for the site as early as
2025. The addition of this sequestration site expands the potential
volume of CO2 that the Company can sequester near Donaldsonville,
Louisiana, to approximately 300 million metric tons, and the
Company’s total sequestration site capacity has expanded to
approximately 1.5 billion metric tons, which includes sites along
the U.S. Gulf Coast in Alabama, Louisiana, and Texas. Denbury
intends to drill a stratigraphic test well in one or more of its
potential storage locations later this year to confirm the
Company’s geologic understanding and progress Class VI permitting
efforts with the EPA.
Nik Wood, Denbury’s Senior Vice President of Carbon Solutions,
commented, “We are excited to announce this agreement which expands
our Gulf Coast CO2 storage portfolio. We now have multiple
sequestration sites in an area with tremendous existing and future
potential CO2 emissions as we strive to provide an economic,
low-risk solution for the storage of industrial carbon emissions.
Our proven track record in providing highly reliable transportation
and secure underground injection of CO2 emissions from our
industrial partners, combined with our ideally positioned
infrastructure, is unmatched in the industry and positions us well
for continued success and growth in CCUS.”
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.
This press release contains forward looking statements that
involve risks and uncertainties, including the timing and
availability of CO2 to be sequestered, the Company’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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220721006009/en/
DENBURY IR CONTACTS: Brad Whitmarsh, 972.673.2020,
brad.whitmarsh@denbury.com Beth Bierhaus, 972.673.2554,
beth.bierhaus@denbury.com
Denbury (NYSE:DEN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Denbury (NYSE:DEN)
Historical Stock Chart
From Apr 2023 to Apr 2024