Denbury Inc. signed three new lease agreements with private landowners in Louisiana, securing additional exclusive rights to develop carbon dioxide (CO2) sequestration projects along the state’s industrial corridor.
Two of the agreements cover a contiguous area of about 84,000 acres some 30 miles southeast of New Orleans, La. Denbury estimates this site will provide over 500 million metric tons of potential CO2 sequestration capacity. The company plans to initially connect emissions from nearby industrial facilities to this site, with future plans for a pipeline connection to the company’s Green Pipeline in Donaldsonville, La.
The planned pipeline route is within 10 miles of multiple industrial sources that collectively emit over 20 million tpy of CO2.
The company also executed a new pore space agreement adjacent to acreage leased under its recently announced agreement near Donaldsonville, Louisiana. The new agreement expands the potential volume of CO2 that the company estimates can be sequestered at the combined site to more than 220 million metric tons—a 50% expansion to the original site. The combined 11,000-acre site lies less than 10 miles from Denbury’s existing CO2 pipeline infrastructure. Some 30 million tpy of CO2 are currently emitted within a 20-mile radius of the site.
Denbury now has exclusive rights to develop pore space storage with an estimated capacity of more than 1.4 billion metric tons of CO2.