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.”
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.
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.