Oil and Gas Lawyer Blog
Talos Energy announced that it has signed a lease with the Texas General Land Office for more than 40,000 acres offshore to store CO2 captured from industrial sites along the coast. Talos said it is capable of storing up to 275 million metric tons of Co2 and is “the first ever major offshore carbon sequestration site” in the U.S.”
Talos is also planning a CCS site along the Mississippi River with a capacity to store 500 million metric tons of CO2. Talos leased 26,000 acres along the Mississippi for a “carbon sequestration hub” with Storegga Limited and EnLink Midstream, to link with industrial emitters along the Louisiana coast that emit some 80 million metric tons of CO2 per year — with a right of first refusal to lease another 63,000 acres in the area.
Oxy is developing a carbon capture facility in the Permian Basin capable of removing one million tons a year from the atmosphere.
Rystad Energy estimates that global spending on CCS will total more than $50 billion in the next three years, up from $2.8 billion in 2021.
ExxonMobil has committed to spend $3 billion over the next four years on low carbon solutions, including CCS.
North America has 16 of the 22 operational or under construction CCS projects in the world.
The US is the second-largest carbon emissions in the world, at 14%, behind China at 29%. In 2016 the US emitted 6 trillion tons of CO2. The US per capita carbon emissions were 15.52 tons.
For the US to capture half of its emissions of carbon it would need 63 projects like the one Talos is planning in Louisiana, storing 80 million tons per year.
Several companies are actively acquiring leases from landowners along the Texas gulf coast to allow them to inject and store CO2 under their lands.