Oxy secures lease in Louisiana for carbon sequestration
Occidental Petroleum (Oxy)'s low carbon ventures business OLCV has entered into a lease agreement with Manulife Investment Management for 27,000 acres of timberland in west Louisiana to develop a carbon sequestration hub, the companies announced on June 27.
The lease was secured by OLCV's subsidiary 1PointFive, giving it access to subsurface pore space and surface rights to develop and operate a carbon sequestration hub, and permanently store CO2 emissions from local industry. It has already applied for two Class VI injection permits for the project.
"This agreement strengthens our CCUS position and advances commercial-scale decarbonisation solutions in line with Oxy’s net-zero goals," OLCV vice president Doug Conquest commented.
“We understand the importance our forests and underlying land play as a natural climate solution in decarbonisation,” said Eduardo Hernandez, managing director and global head of Manulife's timberland operations, added. “We focus on sustainably managing our forests for climate-positive and nature-positive impact, and we are excited to find additional opportunities to continue this work for clients.”
1PointFive and Manulife are also exploring other locations for carbon sequestration throughout the region and the country.