Carbon capture and storage (CCS) opportunities are being explored on the US Gulf Coast and the Gulf Coast of Mexico.
Talos Energy today (8th June) said it has formed an exclusive joint venture with Storegga Geotechnologies to source, evaluate and develop potential CCS projects in the regions.
Unveiling details of the agreement, the duo said they will also look at potential developments within state and federal waters offshore Texas, Louisiana, Mississippi and Alabama.
Now formalised, the joint venture combines the strengths of Talos’s offshore operational and sub-surface expertise with Storegga’s end-to-end CCS project experience.
Under the agreement terms, as individual CCS projects are matured in the future, each will be ring-fenced with separate operating agreements, financing structures and the possibility of additional working interest partners.
The agreement requires zero up front capital commitments, and the Partnership will share costs 50/50 in the initial phases.
Talos is designated as the operating partner of the joint venture.
Commenting on the news, Talos President and CEO Timothy Duncan, said, “We’re excited to announce this joint venture with Storegga and thrilled to partner with their team as they expand into the US.”
“Engaging in CCS projects along the Gulf Coast and shallow water Gulf of Mexico compliments our operating skill set and diversifies the Company to seize this significant market opportunity.”
“We have a responsibility to deliver affordable, reliable energy with the lowest carbon footprint possible, and this joint venture allows us to expand our impact beyond our own assets to provide solutions for removing emissions from critical industrial sectors in our backyard.”
It is thought that the US Gulf Coast is a prime location for offshore carbon capture projects in the US due to its high concentrations of power generation, industrial and petrochemical facilities which emit more than 1,000,000 tonnes of CO2 annually.
In addition to the large industrial multi-national companies and conglomerates present in the region, there is also a high density of smaller private and “middle-market” industrial sites which may require CCS solutions in the future.
Commenting on its plans for the region, Nick Cooper, CEO of Storegga, said, “The rapid deployment of CCS and carbon management value chains requires appropriate geological storage for carbon sequestration, access to emitters and existing infrastructure, and partnerships with experienced, like-minded organisations that share the desire to make this happen.”
“The US Gulf Coast offers significant potential for CCS, and we are delighted to be partnering with Talos, a leading offshore operator. The joint venture demonstrates the international opportunities for Storegga as an independent developer of CCS infrastructure. We hope that it will be the first of many.”