Carbonvert-Castex JV to Develop CCS Hub in Louisiana

A joint venture (JV) of Carbonvert Inc. and Castex Energy Inc.’s wholly-owned subsidiary Castex Carbon Solutions LLC is developing a carbon capture and storage (CCS) project in a 24,000-acre tract in Louisiana waters, offshore Cameron Parish, in line with the JV’s operating agreement with the state.

The Cameron Parish CO2 Hub will be “a leading choice for regional emitters seeking efficient and sustainable decarbonization solutions”, Carbonvert and Castex said in a joint news release. Castex will be the operator of the hub. Carbonvert and Castex formed a 50-50 JV in August 2022 to identify and advance CCS projects in Louisiana.

Based on technical and subsurface studies by Castex and the region’s advantageous subsurface geology, the Cameron Parish CO2 Hub has a total storage capacity of more than 250 million metric tons of carbon dioxide and will service the region’s high concentration of existing industrial emitters and anticipated greenfield projects, notably ammonia and liquefied natural gas (LNG) facilities. The JV partners are also actively exploring opportunities to repurpose existing pipeline infrastructure to support the project, according to the release.

“We firmly believe our Cameron Parish offshore project will help shape Louisiana’s low carbon future”, Carbonvert CEO Alex Tiller said. “Our CCS project will strengthen the local economy via funds from the newly adopted Louisiana Act No. 378, via the Federal Justice40 requirements, and by attracting new low-carbon focused businesses and related jobs. It will also provide a solution to clean up existing regional CO2 emissions, which is a win for everyone”.

“Castex and Carbonvert look forward to developing the first offshore CO2 storage hub in Louisiana”, Castex EVP and CFO Aaron Killian said. “Our Cameron Parish project combines premier geologic storage attributes with existing midstream infrastructure to provide a range of tailored solutions to the adjacent industrial corridors in need of economically viable CO2 storage. The significant environmental benefit and local economic impact of this project align with the mission and vision of the JV Partners and the industries we are collaborating with to address regional CO2 emissions”.

CCS Project in Corpus Christi

Earlier in the month, the Texas General Land Office (GLO) awarded a partnership involving Carbonvert a contract for over 140,000 gross acres of pore space owned by the Permanent School Fund (PSF) for carbon dioxide storage located offshore Corpus Christi, Texas. The partnership is composed of Repsol as the operator with a 40 percent stake, Carbonvert with a 40 percent stake, Mitsui E&P USA with a 10 percent stake, and POSCO International with a 10 percent stake, according to an earlier news release.

The project will be located near over 35 million metric tons per year of existing industrial emissions within 100 miles of the storage sites and more than 20 million metric tons per year of anticipated greenfield project emissions expected by 2035 to create a globally competitive carbon storage hub, according to the release.

The consortium will now enter a negotiation stage with the Texas GLO based on the terms of the partnership submitted along with the original request by the GLO. Final terms are subject to the approval of the Texas School Land Board, the release said.

“Repsol is excited to lead and operate this project that will ultimately add to our strong presence in the country through our O&G [oil and gas] operations and Low Carbon projects”, Repsol Geological Low Carbon Solutions Director David Ramos said. “Corpus Christi is a strategic region for Repsol pursuing Low Carbon developments where the Port of Corpus Christi plays an essential role for the industry. This project will provide significant contributions internationally as well to help grow our global low carbon portfolio”.

Tiller said the project instills “confidence in local industries to launch CO2 capture initiatives and enhance resilience amid carbon-related global trade requirements and customers’ increasing demand for low-carbon products”. Tiller added, “It also attracts local investments from sectors like blue hydrogen and sustainable aviation fuel refining”.

”Mitsui sees the Corpus Christi region as an emerging hub for low carbon solutions and energy transition”, Mitsui E&P USA President and CEO Kazuhiko Gomi said.

POSCO Head of E&P Business Division Jhoon Soo Jho said, “With this project as a catalyst, POSCO International will accelerate the expansion of its eco-friendly portfolio and continue to discover businesses that are in compliance with our corporate citizenship initiative for both the global and local communities”.

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