Written by: Leonard Parker | Houston Business News | 08th September
The Texas General Land Office has approved a bid for an off-shore carbon capture project in the coastal territory just south of Beaumont and Port Arthur.
The 40,000 acre site in Texas state waters was granted to independent oil and gas producer Talos Energy and it’s startup partner, Carbonvert, as the only successful bid out of 12 that was submitted to the state.
Talos, the Houston-based operator of the project, predicts that it could potentially hold between 225 to 275 million metric tons of carbon dioxide emitted from industrial sources like plants and terminals.
The company has already been studying the area as it continues to ink other deals for projects across the Gulf Coast, pinpointing places like Southeast Texas that both have the right geological conditions and plentiful industrial clients looking for a way to reduce their carbon footprint.
“The Project Site possesses favorable geological characteristics and close commercial proximity to support an attractive project in the future,” Talos President and CEO Timothy Duncan said in a statement. “This is the first of several steps in our strategy to build multiple carbon capture and storage sites along the United States Gulf Coast where we can use Talos's core competencies to operate these important projects."
The companies and GLO will now shift to the negotiation phase of the lease agreement process, with final terms up to the approval of the Texas School Land Board.
Carbonvert, which was formed in the latter part of 2020, boasts a staff of transitional energy veterans that have been involved in other large-scale carbon capture projects.
Talos isn’t the only company trying to pursue new projects aimed at continuing the production of fossil fuels under growing pressures for carbon reduction, but it is now in a small group of firms that have actually started the process of securing available land.
Using the same expertise and seismic databases that producers have used for off-shore production and storage, companies like Talos are now trying to leverage those advantages to create the kind of carbon solutions industries like LNG exporters have been clamoring for as Asian and European buyers demand cleaner fuels.
After it placed its bid for this project with Carbonvert, Talos announced a joint-venture partnership with United Kingdom-based clean energy player firm Storegga Geotechnologies to scout out even more potential sites for carbon capture projects.
In an earnings call in June, Duncan said that the partnership with Storegga would allow it to replicate projects like one underway in the UK’s North Sea, and opens Talo’s scope from Corpus Christi to Alabama's coast.
"We want to redefine the role of traditional oil and gas companies, as we recognize the need to responsibly develop and produce hydrocarbons as well as lowering overall emissions in the communities where we work and live,” Duncan said in a statement announcing the project.