Denbury Enhances Industry-Leading Carbon Sequestration Portfolio with New Agreements in Louisiana's Industrial Corridor
16 März 2022 - 9:15PM
Business Wire
Denbury Inc. (NYSE: DEN) (“Denbury” or “the Company”) today
announced three new lease agreements with large private landowners
in Louisiana, securing additional exclusive rights to develop
significant carbon dioxide (CO2) sequestration projects in high
quality, high-capacity reservoirs underlying deep sealing
formations along the state’s industrial corridor.
Two of the agreements cover a contiguous area of approximately
84,000 acres located approximately thirty miles southeast of New
Orleans, Louisiana. Denbury estimates this site will provide more
than 500 million metric tons of potential CO2 sequestration
capacity. The Company plans to initially connect emissions from
nearby industrial facilities to this site, with future plans for a
pipeline connection to the Company’s Green Pipeline in
Donaldsonville, Louisiana. The planned pipeline route is within 10
miles of multiple industrial sources that collectively emit over 20
million metric tons of CO2 annually. The Company believes that this
site will provide an economic, large-scale solution for the
transportation and permanent sequestration of captured industrial
emissions along the Louisiana industrial corridor between
Donaldsonville and lower Plaquemines Parish.
Denbury also executed a new pore space agreement adjacent to the
acreage leased under the Company’s recently announced agreement
near Donaldsonville, Louisiana. This new agreement expands the
potential volume of CO2 that the Company estimates can be
sequestered at the combined site to more than 220 million metric
tons, approximately a 50% expansion to the original site. The
combined 11,000-acre site is located less than 10 miles from the
Company’s existing CO2 pipeline infrastructure, and there are
approximately 30 million metric tons of CO2 currently emitted
annually within a 20-mile radius of the site.
Chris Kendall, Denbury’s President and Chief Executive Officer,
commented, “These agreements further cement Denbury’s position as
the definitive leader in CCUS, and we are continuing to advance
negotiations with multiple industrial partners whose captured
emissions would be stored in these sites. Today, through our
unrivaled CO2 pipeline infrastructure and enhanced oil recovery
operations, Denbury is uniquely able to provide transportation and
certainty of storage capacity for captured industrial CO2
emissions. Looking forward, we are poised for continued growth and
success in the emissions-intensive Gulf Coast region, as we
significantly expand our storage capacity through the addition of a
diverse portfolio of sequestration sites, exemplified by the
agreements announced today.”
Denbury now has exclusive rights to develop pore space storage
with an estimated capacity of more than 1.4 billion metric tons of
CO2. Denbury’s leadership position in CCUS is supported by over 20
years of experience transporting and injecting CO2 underground and
more than 1,300 miles of CO2 pipelines through which the Company is
currently moving in excess of 14 million metric tons of CO2
annually.
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 the Company 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 the Company’s estimates only
as of today and should not be relied upon as representing its
estimates as of any future date. The Company assumes no obligation
to update these forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220316005796/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