Denbury, NRP to evaluate CO2 sequestration on Alabama coast

Denbury Carbon Solutions LLC, a Denbury Inc. subsidiary, together with a subsidiary of Natural Resource Partners LP (NRP), agreed to jointly evaluate potential development of a permanent CO₂ sequestration site on Alabama’s Gulf Coast.

The agreement provides Denbury with exclusive rights to develop a CO₂ sequestration site on 75,000 acres of pore space controlled by NRP in Baldwin County, near Mobile, Ala. Denbury estimates total CO₂ storage potential 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.

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.