Storegga sets up US CCS venture
UK carbon capture and sequestration (CCS) pioneer Storegga has set up a 50-50 joint venture (JV) with explorer Talos Energy to focus on sourcing, evaluating and developing project opportunities on the US Gulf Coast and Gulf of Mexico. They are "exploring opportunities with counterparties along the CCS value chain," they said June 8. They described the region as a "prime location for offshore carbon capture projects in the US."
Counterparties will include emitters, pipeline and other infrastructure operators and financiers. The JV combines Storegga’s CCS project experience and Talos’s offshore operational and sub-surface expertise, they said, although Storegga is yet to take final investment decision on its Acorn CCS project.
Each potential CCS project will be ring-fenced with separate operating agreements, financing structures and the possibility of new working interest partners. The agreement requires no 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 JV.
Talos’s core skill set complements CCS project requirements, particularly with respect to CO2 injection and storage, including geology and geophysics, reservoir engineering, drilling and completion operational excellence, regulatory processes and inland water and offshore logistics.
The Gulf Coast has a high concentrations of power generation, industrial and petrochemical facilities, including over 100 facilities emitting more than 1mn metric tons/yr of CO2.
There is a large "natural carbon storage province located offshore in shallow waters in the Gulf of Mexico Shelf and potentially holding over 30 gigatons of available storage, they said. There is also a wealth of skilled labour on hand.
Storegga CEO Nick Cooper said: “The US Gulf Coast offers significant potential for CCS and we are delighted to be partnering with Talos, a leading offshore operator.”
Talos CEO Timothy Duncan said that "engaging in CCS projects along the Gulf Coast and shallow water Gulf of Mexico complements our operating skill set and diversifies the company to seize this significant market opportunity." He said the company had a responsibility to deliver affordable, reliable energy with the lowest carbon footprint possible.
US major ExxonMobil meanwhile has its sights set on CCS in the Houston Ship Channel and has set up a CCS unit of its own to develop projects.