Denbury expands potential CO2 sequestration acreage with Louisiana lease

Denbury Inc. has signed an agreement that will expand its US Gulf Coast CO₂ storage assets.

The company signed a definitive agreement with a landowner near Donaldsonville, La., to lease about 18,000 acres for future carbon dioxide (CO₂) sequestration, the company said in a release July 21. The site lies in Assumption and St. James Parishes, less than 5 miles from the company's existing 320-mile Green Pipeline and near the state's industrial corridor. 

The company anticipates the site’s geologic characteristics, including thick laterally extensive, low dip reservoirs, will enable total sequestration capacity of more than 80 million metric tons of CO₂.

First potential CO₂ injection for the site could be as early as 2025, Denbury said.

With the acquisition, Denbury expects to be able to sequester about 300 million metric tons of CO₂ near Donaldsonville and expand its total sequestration site capacity to about 1.5 billion metric tons, which includes sites along the US Gulf Coast in Alabama, Louisiana, and Texas. Similar agreements were secured with private landowners in Louisiana in March (OGJ Online, Mar. 18, 2022). 

The company plans to drill a stratigraphic test well in one or more of its potential storage locations later this year to confirm the company's geologic understanding and progress Class VI permitting efforts with the US Environmental Protection Agency.