Chevron has joined the consortium behind the Bayou Bend CCS offshore carbon capture and sequestration hub that could sequester 225-275 million tonnes of carbon dioxide (CO2) from industrial sources in the area.
Talos Energy and Carbonvert in 2021 were jointly announced as the winning bidder for the Texas General Land Office’s Jefferson County, Texas carbon storage lease, located in state waters offshore Beaumont and Port Arthur, Texas.
Now, with support of Chevron, the partnership will look to further decarbonise the Bayou Bend and rapidly advance the project so it can reach its full potential.
Chris Powers, Vice-President of Carbon Capture, Utilisation, and Storage (CCUS) for Chevron New Energies, said, “Since our establishment of Chevron New Energies, we have been consistent in our communication that partnership will be required to grow successful lower carbon businesses.”
“This venture is an example of the potential that partnering can have in moving large-scale lower carbon projects forward. Talos and Carbonvert have worked to rapidly advance this project, and as a priority project for Chevron in a key industrial area, we are excited to contribute our experience and capability to develop the leading offshore carbon sequestration hub for the region.”
Upon closing of the joint venture, equity interests in the joint venture will be 25% Talos, 25% Carbonvert and 50% Chevron, and Talos will remain the operator.
Timothy Duncan, President and CEO of Talos, said, “Chevron brings significant expertise and experience to this project, and we are excited about what this partnership can deliver. We share a collective interest and commitment to developing low carbon solutions, and the success of these solutions will depend greatly on collaborative partnerships throughout the value chain.”
“We believe the addition of Chevron greatly enhances the execution of this hub-scale project and we hope this sends a clear signal to industrial partners in the Beaumont and Port Arthur region that we are focused on making Bayou Bend the premier CCS project in southeast Texas.”
It is believed that the Bayou Bend CCS lease is the first and only offshore lease in the U.S. dedicated to CO2 sequestration.