Carbon Capture & Storage: Chevron Buying Into U.S. Gulf of Mexico Joint Venture
United state oil companies Chevron and Talos and carbon capture & storage project development & finance firm Carbonvert have signed a memorandum of understanding (MOU). This allowed for a broadened joint venture to design the Bayou Bend CCS offshore carbon capture and sequestration hub presently held by Talos and Carbonvert.
In 2021, a joint venture involving Talos and Carbonvert (currently called Bayou Bend CCS) won the bid for the Texas General Land Office’s (GLO) Jefferson County, Texas, carbon storage lease, situated offshore Beaumont and Port Arthur, Texas.
The Bayou Bend CCS project site involves over 40,000 acres. According to Talos and Carbonvert’s initial estimations, it might sequester 225 to 275 million metric tons of carbon dioxide (CO2) from industrial origins in the region. The Bayou Bend CCS lease is the first, and only offshore lease in the United States devoted to CO2 capture.
Under MOU terms, Carbonvert and Talos will add the Bayou Bend CCS lease to an extended joint venture involving Chevron in exchange for funds at closing and capital cost carry through project FID. At the time of conclusion of the joint venture, equity interests in the joint venture would be 25% Talos, 25% Carbonvert, and 50% Chevron. Talos would remain the operator.
Chris Powers, vice president of Carbon Capture, Utilization, and Storage (CCUS) for Chevron New Energies, stated, “Since our establishment of Chevron New Energies, we have been consistent in our communication that partnership will be required to grow successful lower carbon businesses.
This venture is an example of the potential that partnering can have in moving large-scale lower-carbon projects forward.” “Talos and Carbonvert have worked to rapidly advance this project, and as a priority project for Chevron in a key industrial area, we are excited to contribute our experience and capability to develop the leading offshore carbon sequestration hub for the region.”
Timothy S. Duncan, president and CEO of Talos, stated, “Chevron brings significant expertise and experience to this project, and we are excited about what this partnership can deliver.” “We share a collective interest and commitment to developing low carbon solutions, and the success of these solutions will depend greatly on collaborative partnerships throughout the value chain.
We believe the addition of Chevron greatly enhances the execution of this hub-scale project, and we hope this sends a clear signal to industrial partners in the Beaumont and Port Arthur region that we are focused on making Bayou Bend the premier CCS project in southeast Texas.”
Alex Tiller, president, and CEO of Carbonvert, stated, “This project is a catalyst that enables dramatic regional carbon emissions reduction to the benefit of local industry, the global community, and future generations.” “We look forward to the opportunity to partner with Chevron on such a monumental project supporting decarbonization and partnering with customers on their paths to net zero.”
The development of the suggested joint venture hinges on the negotiation of definitive agreements with common closing problems, including regulatory authorization, the firms stated.
Originally published by: oedigital.com
