Denbury, Natural Resource Partners to study Alabama CCS
US independent producer Denbury said February 7 it had executed, through a subsidiary, a CO2 sequestration agreement with a subsidiary of Natural Resource Partners to evaluate carbon capture and storage (CCS) opportunities along Alabama’s Gulf Coast.
The agreement gives Denbury exclusive access to about 75,000 acres of pore space controlled by NRP in Baldwin County, Alabama, near Mobile, which Denbury says could sequester as much as 300mn metric tons of CO2. Depending on the pace and scale of CCS developments in the Gulf Coast region, Denbury may consider expanding its existing Gulf Coast CO2 pipeline network to connect to this site.
“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,” Denbury CEO Chris Kendall said. “We look forward to working with the team at NRP on this exciting project.”
Craig Nunez, CEO of NRP, said the Baldwin County project could provide a blueprint for similar developments across the 3.5mn acres of sequestration rights held by NRP in the US.
Subject to satisfactory title diligence, Denbury will evaluate the Baldwin County site to determine its suitability for CO2 storage and at the same time pursue agreements to transport and store CO2 emissions from existing and future sources nearby. The site, Denbury said, could be ready to receive CO2 injection by 2026.