Page 9 - NorthAmOil Week 44 2022

NorthAmOil ENERGY TRANSITION NorthAmOil

Occidental, Natural Resource Partners

partner on Gulf Coast carbon hub

TEXAS OCCIDENTAL Petroleum’s Low Carbon Ven- through a series of chemical reactions.
tures subsidiary (OLCV) and Natural Resource “We look forward to working with Natural
Partners (NRP) will evaluate and potentially Resource Partners as we advance our sequestra-
develop a permanent carbon dioxide (CO2) tion hubs that will provide industrial emitters
sequestration hub on the Gulf Coast in South- with an economic and practical solution to cap-
east Texas. ture and securely store CO2,” said OLCV’s vice
OLCV expects the development of the project president, Doug Conquest. “This agreement
will be completed by its subsidiary 1PointFive, furthers our commercial-scale decarbonisation
a carbon capture, utilisation and sequestration solutions as we work to achieve net zero and help
(CCUS) business. others do the same,” he said.
The company will exclusively develop a CO2 “We are pleased to partner with OLCV on
sequestration hub on around 65,000 acres (263 NRP’s second transaction to utilise our acre-
square km) of ‘pore space’ in a geological res- age for permanent subsurface carbon dioxide
ervoir controlled by NRP. The total CO2 stor- sequestration,” said NRP’s president and chief
age potential of this location is at least 500mn operating officer, Craig Nunez. “OLCV’s exper-
tonnes. tise in carbon management will provide impor-
The sequestration site is near a sizeable tant benefits to the environment and expand our
amount of industry with CO2 emissions, said carbon neutral portfolio.”
Occidental. NRP currently has some 140,000 acres
The agreement advances OLCV’s and 1Point- (56,700 hectares) of pore space under lease for
Five’s strategic vision to develop carbon capture carbon sequestration with a total estimated stor-
and sequestration hubs, some of which are age capacity of 800mn tonnes of CO2.
expected to be anchored by Direct Air Capture “We continue to evaluate carbon sequestra-
(DAC) facilities. tion opportunities on the approximately 3.3mn
DAC is a technology that captures CO₂ acres [1.33mn hectares] of additional carbon
directly from the atmosphere with an engi- sequestration rights we own across the Gulf
neered, mechanical system. It extracts the CO2 Coast,” said Nunez.™

Denbury to support blue methanol project

LOUISIANA DENBURY Carbon Solutions has executed a a quarter of the pipeline’s capacity.
definitive agreement with Lake Charles Metha- LCM’s facility is designed to use Topsoe tech-
nol (LCM) to provide CO2 transportation and nology which converts natural gas into hydrogen
sequestration for LCM’s planned blue methanol which is then synthesised into methanol. The
project near Lake Charles, Louisiana. Denbury process incorporates permanent carbon cap-
Carbon Solutions is a subsidiary of Denbury. ture and sequestration. LCM says that the blue
The process is anticipated to deliver over hydrogen production should qualify for “clean
500mn kg of hydrogen per year as a feedstock hydrogen” tax credits under the Inflation Reduc-
to produce 3.6mn tonnes per year of blue meth- tion Act and the Bipartisan Infrastructure Acts.
anol, while capturing approximately 1mn tpy of Denbury will transport the CO2 captured
carbon dioxide (CO2). This is a CO2 equivalent by LCM to its Green Pipeline and then to one of
of removing the emissions of 200,000 cars from multiple planned sequestration sites along Den-
the road every year. bury’s extensive Gulf Coast CO2 pipeline net-
The project is expected to reach a final invest- work. In association with the project, Denbury
ment decision (FID) in 2023. First operations are expects to build a pipeline connecting the Lake
expected by the end of 2027. LCM is currently Charles industrial area to its Green Pipeline.
finalising major permits to begin construction. The Lake Charles industrial area has CO2
Blue methanol is produced from blue hydro- emissions of an estimated 20mn tpy.
gen – produced from natural gas – in combi- “In addition to serving LCM’s CO2 transpor-
nation with carbon capture technology. It cuts tation and storage plans, our pipeline network
well-to-tank CO2 emissions. expansion into the Lake Charles area will posi-
The blue methanol facility will be located on tion Denbury to help other industrial customers
the Calcasieu River near Lake Charles, some in the area decarbonise their businesses,” said
16 km from Denbury’s Green Pipeline, com- Denbury Carbon Solutions’ senior vice presi-
pleted in 2010. Denbury is currently only using dent and head, Nik Wood.™

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