Danbury today announced that its wholly-owned subsidiary, Denbury Carbon Solutions, LLC, and a subsidiary of Natural Resource Partners L.P. (NYSE:NRP) (“NRP”), have executed a CO2 Sequestration Agreement for the evaluation and potential development of a permanent CO2 sequestration site located on Alabama’s Gulf Coast.
The agreement provides Denbury with the exclusive rights to develop a CO2 sequestration site on approximately 75,000 acres of pore space controlled by NRP in Baldwin County, near Mobile, Alabama. Denbury estimates the total CO2 storage potential of this site to be over 300 million metric tons. Depending on the pace and scale of regional CCUS development, Denbury may consider expanding its existing Gulf Coast CO2 pipeline network to connect to this site.
Chris Kendall, Denbury’s President and Chief Executive Officer, commented, “We are excited to announce this agreement with NRP, which further expands Denbury’s industry-leading Gulf Coast CO2 infrastructure position in a region with high volumes of existing industrial CO2 emissions. In addition, 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. We look forward to working with the team at NRP on this exciting project.”
Craig Nunez, NRP’s President and Chief Operating Officer, stated, “We are very pleased to partner with Denbury on this world-class carbon sequestration project, which has the potential to provide important benefits to the environment and add significant value to NRP. Denbury’s extensive experience with CO2 transportation, underground injection and understanding of Gulf Coast geology, will enable us to maximize the value of our Baldwin County acreage. We expect this 75,000-acre project to be the first of what will potentially be numerous carbon sequestration projects conducted on the approximately 3.5 million acres where we own the rights to sequester CO2 across the United States.”
Subject to satisfactory title diligence, Denbury plans to complete a technical evaluation of the site to ensure its suitability for CO2 sequestration, while simultaneously pursuing agreements to transport and store CO2 emissions from nearby existing or planned industrial facilities. Denbury estimates that the site could be ready to receive CO2 injection by 2026.
For more information visit www.denbury.com