Denbury to Ramp up Carbon Capture, Usage and Storage Efforts

Researched by Industrial Info Resources (Sugar Land, Texas)--Denbury Incorporated (NYSE:DEN) (Plano, Texas), an exploration and production company that focuses on enhanced oil recovery (EOR) operations, has updated its carbon capture, utilization and storage (CCUS) strategy--which includes related capital expenditures of between $200 million and $250 million from 2023 to 2030--as the company expands its pipeline network and builds out carbon dioxide (CO2) sequestration sites. CCUS and related carbon capture and storage (CCS) projects continue to pop up across the U.S., and Industrial Info is tracking four such projects from Denbury worth $300 million.

Denbury is one of the U.S. leaders in EOR projects, where CO2 is used to extend oil well life by injecting the gas to obtain additional oil from declining wells.

As part of the company's CCUS Business Outlook Event, the company said CCUS capital expenditures will peak in 2024 and 2025.

The company features a CO2 pipeline network of more than 1,300 miles, it said--about 25% of the total CO2 pipelines in the U.S. Denbury estimated it can expand its Gulf Coast network capacity to more than 150 million metric tons per year.

The company is developing an approximately 90-mile, $100 million extension of a CO2 pipeline, to transport an additional 16 million metric tons per year from industrial plants along the Mississippi-Louisiana border to a planned $100 million sequestration site in Mobile, Alabama. The site would be capable of storing more than 300 million metric tons per year. The projects are in their early planning phases.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can see detailed reports on the pipeline and sequestration projects.

Denbury also is developing a $20 million extension of the Green CO2 pipeline, in Donaldsonville, Louisiana, which entails installing about 5 miles, to transport an additional 16 million metric tons per year from another planned $80 million sequestration hub. Construction of the hub entails installing infrastructure and establishing underground storage to permanently store more than 80 million metric tons per year. These projects also are in their early planning phases. Subscribers can see reports for the Green pipeline and sequestration projects. Subscribers to Industrial Info's GMI Pipeline Asset Database can click here for the Green pipeline profile.

In the business outlook press release, Denbury estimated its contracted sequestration potential would jump to approximately 2 billion metric tons, following the addition of the two sites.

Earlier this week, the company announced it signed agreements for the potential development of two additional sequestration sites along the U.S. Gulf Coast. The first agreement was with a landowner for the future development and operation of a 31,000-acre sequestration site approximately 25 miles north of the Green Pipeline.

According to a related press release: "Denbury estimates that there is potential to store up to 250 million metric tons of CO2 in the site, with first injection planned as early as 2026. The strategic location of the site provides nearby storage potential for the heavy industrial areas of Beaumont and Port Arthur, Texas, and Lake Charles, Louisiana. In close proximity to the dedicated CO2 sequestration site is more than 60 million metric tons per year of existing emissions."

The second agreement Denbury signed was an exclusive lease agreement with Weyerhauser (NYSE:WY) (Longview, Washington) for the evaluation and potential development of Denbury's first sequestration site in Mississippi, directly adjacent to its NEJD Pipeline--approximately 35 miles south of the company's Jackson Dome field. The site would stretch across 16,000 acres of subsurface pore space owned by Weyerhaeuser.

Subscribers to the GMI Pipeline Asset Database can click here for the NEJD pipeline profile, and subscribers to the GMI Production Plant Database can click here for information on the Jackson Dome field.

Subscribers to Industrial Info's GMI database can click here for a full list of detailed reports for projects mentioned in this article, click here for a full list of plant profiles, and click here for information on the pipelines mentioned.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).