Denbury Provides CCUS Update, Including 2022 Goals and Multiple New Agreements
24 Februar 2022 - 12:35PM
Business Wire
Denbury Inc. (NYSE: DEN) (“Denbury” or “the Company”) today
provided an update on the continued growth of Denbury Carbon
Solutions, its carbon capture, utilization, and storage (“CCUS”)
business, including established 2022 goals and multiple new
agreements for CO2 transportation, utilization and storage
services.
The Company’s 2022 goals for Denbury Carbon Solutions that will
further advance the Company’s vision of leading the energy
transition with world-class carbon solutions include:
- Reach agreements for transportation and storage of captured
industrial CO2 emissions totaling in excess of a cumulative 10
million metric tons of CO2 per year (mmtpa);
- Secure CO2 sequestration sites in strategic locations with an
aggregate storage potential of at least 1.2 billion tons of CO2;
and
- Progress pre-development activities on multiple potential
sequestration sites, with Class VI permitting processes commenced
during 2022.
The above volumetric targets are inclusive of all prior
agreements announced, including those executed in 2021 and thus far
in 2022.
Chris Kendall, Denbury’s President and Chief Executive Officer,
commented, “Following a year of tremendous progress and strong
execution across our business, I believe that 2022 will be a year
of significant transformation for our Company as we rapidly advance
the commercialization of our CCUS business. We’ve established
aggressive but achievable 2022 goals for our CCUS business related
to long-term CO2 transportation and storage agreements as well as
the development of large-scale permanent sequestration fields and
facilities. With the agreements announced in 2022 to date, we are
off to a great start. Our mission in CCUS is to provide the
industry’s most extensive and reliable CO2 transportation and
storage service network, leveraging our existing pipeline system,
sub-surface expertise, EOR assets and over two decades of
experience with CO2. Importantly, in our existing Gulf Coast
enhanced oil recovery business, we can inject upwards of 10 million
tons of captured industrial CO2 per year, under existing permits
and regulations, making us the only CCUS company that can provide
an integrated CO2 solution and certainty of takeaway today. We look
forward to where we will take our CCUS business in 2022.”
2022 SEQUESTRATION SITE AGREEMENTS
- Denbury has signed a definitive agreement with a large
landowner to lease a substantial pore space position just east of
Donaldsonville, Louisiana, with an estimated sequestration capacity
of more than 150 million metric tons of CO2. The sequestration site
is less than 10 miles from the Company’s Green Pipeline, with
excellent geologic characteristics supporting high CO2 injectivity
and extensive sealing formations. First injection at the site is
targeted as early as 2025. The site is in close proximity to one of
the highest geographic concentrations of industrial CO2 emissions
in the U.S.
- The Company previously announced that it signed a definitive
agreement for the exclusive rights to develop a CO2 sequestration
site near Mobile, Alabama. Denbury estimates the total CO2 storage
potential of this site to be over 300 million metric tons. This
site is anticipated to initially anchor development of a CO2
sequestration hub in the Mobile Bay area targeting existing and
newbuild projects. The Company estimates that the site could be
ready to receive CO2 injection by 2026. Depending on the pace and
scale of regional CCUS development, Denbury may consider expanding
its Gulf Coast CO2 pipeline network to connect to this site.
The cumulative CO2 sequestration potential secured by Denbury
currently totals more than 850 million metric tons.
2022 TRANSPORTATION, STORAGE & UTILIZATION
AGREEMENTS
- The Company executed a term sheet for the transportation and
storage of CO2 from an existing chemicals plant located in
Louisiana, less than 15 miles from the Company’s Green Pipeline.
The agreement covers a 12-year timeframe, commencing as early as
2025, and provides for an additional extension period subject to
mutual agreement by both parties. Annual CO2 volumes are estimated
to be 0.4 mmtpa, and Denbury is provided flexibility under the
agreement to utilize the CO2 in either enhanced oil recovery or
direct sequestration.
- Denbury also executed a term sheet with a developer that
intends to build a hydrogen plant in Wyoming within 5 miles of
Denbury’s pipeline infrastructure in the Rocky Mountains. Volumes
of CO2 are anticipated to commence at 0.1 mmtpa as early as 2024,
growing to more than 1 mmtpa over a multi-year period. The
agreement is for 20 years with options to extend. Denbury currently
plans to utilize this CO2 in its enhanced oil recovery
operations.
- The Company announced that it has entered into a strategic
alliance with clean fuels innovator Infinium to collaborate on
developing ultra-low carbon fuels projects in Brazoria County,
Texas. Infinium electrofuels are a direct replacement for
traditional jet fuel and diesel. The electrofuels facilities in
Texas will convert renewable power into ‘green’ hydrogen and
combine it with industrial-sourced CO2 to produce ultra-low carbon
transport fuels. Under the arrangement, Denbury will source and
transport captured industrial CO2 to the Infinium facilities, which
are planned to be sited in close proximity to Denbury’s existing
and planned CO2 pipeline infrastructure, beginning as early as
2025. The Infinium facilities are anticipated to utilize up to 1.5
million tons of CO2 per year. Denbury has an equity investment
option in the projects.
Denbury’s cumulative CO2 transportation, storage and utilization
agreements currently cover approximately 5 million metric tons of
CO2 per year.
Nik Wood, Senior Vice President, CCUS, stated, “Today’s
announcements demonstrate great progress in advancing Denbury’s
CCUS business toward significant value creation. With our 20+ years
of experience in moving and injecting CO2, our 1,300+ mile CO2
pipeline system, and multiple potential sequestration sites in very
close proximity to our infrastructure, Denbury is positioned
extremely well to lead the industry in decarbonizing our world by
safely and economically transporting and storing significant
volumes of industrial-sourced CO2.”
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 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 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 uses the term “agreement” to refer to both
executed definitive agreements and executed term sheets covering
various CCUS arrangements. These arrangements are subject to
technical and feasibility evaluations, and in the case of certain
of the CO2 transportation, utilization and storage term sheets, the
building of new industrial facilities in future years.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220224005251/en/
DENBURY 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
Von Mär 2024 bis Apr 2024
Denbury (NYSE:DEN)
Historical Stock Chart
Von Apr 2023 bis Apr 2024