Denbury Enters Into CO2 Sequestration Agreement With Natural Resource Partners L.P.
February 07 2022 - 4:30PM
Business Wire
Opportunity to develop a world-class CO2
sequestration hub on Alabama’s Gulf Coast
Denbury Inc. (NYSE: DEN) (“Denbury”) today announced that its
wholly-owned subsidiary, Denbury Carbon Solutions, LLC, and a
subsidiary of Natural Resource Partners L.P. (NYSE:NRP) (“NRP”),
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.
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.”
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.”
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 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.
Follow Denbury on Twitter and LinkedIn.
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 https://nrplp.com.
This press release contains forward looking statements that
involve risks and uncertainties, including the nature and extent of
agreements reached with nearby emission capture facilities, along
with the results of Denbury’s pre-injection period tests and
assessments. These statements are based on engineering, geological,
financial and operating assumptions that management of both parties
believe 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 the parties’
estimates only as of today and should not be relied upon as
representing its estimates as of any future date. The parties
assume no obligation to update these forward-looking
statements.
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DENBURY CONTACTS: Brad Whitmarsh, Vice President,
Investor Relations, 972.673.2020, brad.whitmarsh@denbury.com Beth
Bierhaus, 972.673.2554, beth.bierhaus@denbury.com
NRP CONTACTS: Tiffany Sammis, Investor Relations,
713.751.7515, tsammis@nrplp.com
Natural Resource Partners (NYSE:NRP)
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