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.”