Denbury Inc. has signed agreements that will expand the company’s carbon dioxide sequestration portfolio in Louisiana.
Libra CO2
The company signed an agreement with Lapis Energy LP to form a joint venture to design, implement, and operate a CO2 sequestration project at Lapis Energy’s 14,000-acre site in St. Charles Parish, La., about 20 miles west of New Orleans.
Each party will have a 50% interest in a newly formed project company, Libra CO2 Storage Solutions LLC. The partners believe that the site could potentially store at least 200 million metric tons of CO2. The site, near industrial infrastructure, could be ready for first injection as early as 2027.
Depending on the scale and pace of emissions agreements dedicated to the site, Denbury said it intends to connect the site to its existing CO2 pipeline network in southeast Louisiana with a 45-mile pipeline connection.
Virgo
In a separate agreement with Soterra LLC, a wholly owned subsidiary of Greif Inc., Denbury acquires rights to develop a dedicated CO2 sequestration site on 8,500 acres in St. Helena Parish, about 50 miles northeast of Baton Rouge, La., and less than 5 miles from the company’s NEJD CO2 pipeline.
Denbury estimates potential CO2 sequestration capacity of the site (Virgo) to be at least 100 million metric tons and anticipates the site could be ready for first CO2 injection as early as 2026.
With the additions, Denbury expands its CO2 sequestration sites to 10, including sites in Alabama, Louisiana, Mississippi, Texas, and Wyoming, and a total potential storage volume of about 2 billion metric tons of CO2.
In June 2023, Denbury was informed by the US Environmental Protection Agency that it had deemed the company’s Class VI storage permits (up to 6 CO2 injection wells) over the Leo site in Mississippi “technically complete.”
As part of its Class VI permitting program and to advance efforts to provide CO2 sequestration by end-2025, Denbury plans to submit Class VI permits to the EPA covering 2-3 additional dedicated sequestration sites this year.
Denbury intends to drill 2-3 additional stratigraphic test wells across its portfolio by end-2023.
