Natural Resource Partners L.P Enters into CO2 Sequestration Agreement with Denbury
February 07 2022 - 4:30PM
Business Wire
Opportunity for development of a world-class
CO2 sequestration hub on Alabama’s Gulf Coast
Natural Resource Partners L.P. (NYSE: NRP) today
announced that NRP and Denbury Carbon Solutions, LLC, a
wholly-owned subsidiary of Denbury Inc (NYSE: DEN) (“Denbury”),
have executed a CO2 Sequestration Agreement for the evaluation and
potential development of a permanent CO2 sequestration site located
on Alabama’s Gulf Coast.
The agreement provides Denbury with the exclusive rights to
develop a CO2 sequestration site on approximately 75,000 acres of
pore space controlled by NRP in Baldwin County, near Mobile,
Alabama. Denbury estimates the total CO2 storage potential of this
site to be over 300 million metric tons. Depending on the pace and
scale of regional CCUS development, Denbury may consider expanding
its existing Gulf Coast CO2 pipeline network to connect to this
site.
Craig Nunez, NRP’s President and Chief Operating Officer,
stated, “We are very pleased to partner with Denbury on this
world-class carbon sequestration project, which has the potential
to provide important benefits to the environment and add
significant value to NRP. Denbury’s extensive experience with CO2
transportation, underground injection and understanding of Gulf
Coast geology, will enable us to maximize the value of our Baldwin
County acreage. We expect this 75,000-acre project to be the first
of what will potentially be numerous carbon sequestration projects
conducted on the approximately 3.5 million acres where we own the
rights to sequester CO2 across the United States.”
Chris Kendall, Denbury’s President and Chief Executive Officer,
commented, “We are excited to announce this agreement with NRP,
which further expands Denbury’s industry-leading Gulf Coast CO2
infrastructure position in a region with high volumes of existing
industrial CO2 emissions. In addition, the combination of this
site’s significant expected CO2 storage capacity and its proximity
to deep-water ports should enhance the region’s appeal for newbuild
industrial development with carbon capture. We look forward to
working with the team at NRP on this exciting project.”
Subject to satisfactory title diligence, Denbury plans to
complete a technical evaluation of the site to ensure its
suitability for CO2 sequestration, while simultaneously pursuing
agreements to transport and store CO2 emissions from nearby
existing or planned industrial facilities. Denbury estimates that
the site could be ready to receive CO2 injection by 2026.
ABOUT NATURAL RESOURCE PARTNERS
Natural Resource Partners L.P., a master limited partnership
headquartered in Houston, TX, is a diversified natural resource
company that owns, manages and leases a diversified portfolio of
properties in the United States including coal, industrial minerals
and other natural resources, as well as rights to conduct carbon
sequestration and renewable energy activities. NRP also owns an
equity investment in Ciner Wyoming LLC, one of the world’s
lowest-cost producers of soda ash.
Further information about NRP is available on the partnership’s
website at http://www.nrplp.com.
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
2013 has been active in CCUS through the injection of captured
industrial-sourced CO2. The Company currently injects over three
million tons of captured industrial-sourced CO2 annually, and its
objective is to fully offset its Scope 1, 2, and 3 CO2 emissions
within this decade, 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 its unique capabilities and assets that were
developed over the last 20-plus years through its focus on CO2
EOR.
Forward-Looking Statements
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
Partnership expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements are
based on certain assumptions made by the Partnership based on its
experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the Partnership. These risks include, among
other things, statements regarding: the effects of the global
COVID-19 pandemic; future distributions on the Partnership’s common
and preferred units; the Partnership's business strategy; its
liquidity and access to capital and financing sources; its
financial strategy; prices of and demand for coal, trona and soda
ash, and other natural resources; estimated revenues, expenses and
results of operations; projected future performance by the
Partnership's lessees, including Foresight Energy; Ciner Wyoming
LLC’s trona mining and soda ash refinery operations; distributions
from the soda ash joint venture; the impact of governmental
policies, laws and regulations, as well as regulatory and legal
proceedings involving the Partnership, and of scheduled or
potential regulatory or legal changes; global and U.S. economic
conditions; and other factors detailed in Natural Resource
Partners’ Securities and Exchange Commission filings. Natural
Resource Partners L.P. has no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20220207005850/en/
NRP CONTACTS: Tiffany Sammis, Investor Relations,
713.751.7515, tsammis@nrplp.com
DENBURY CONTACTS: Brad Whitmarsh, Vice President,
Investor Relations, 972.673.2020, brad.whitmarsh@denbury.com Beth
Bierhaus, 972.673.2554, beth.bierhaus@denbury.com
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