Equinor Acquires 25% Stake in Texas CCS Project

Researched by Industrial Info Resources (Sugar Land, Texas)--Equinor (NYSE:EQNR) (Stavanger, Norway) said Monday it has acquired a 25% stake in the Bayou Bend carbon capture and storage (CCS) project along the Gulf Coast in southeast Texas.

The project now is a joint venture among Chevron Corporation (NYSE:CVX) (San Ramon, California), through its Chevron New Energies unit, Talos Energy Incorporated (NYSE:TALO) (Houston, Texas), through its Talos Low Carbon Solutions division, and Equinor. Equinor acquired its 25% share through the purchase of Texas Carbon 1 LLC, a subsidiary of Carbonvert (Houston). Chevron is the operator of Bayou Bend with a 50% interest, and Talos holds 25%.

The Bayou Bend project features nearly 140,000 acres of space for permanent carbon dioxide (CO2) sequestration and more than 1 billion metric tons of carbon storage capacity, including nearly 100,000 acres onshore in two Texas counties--Chambers and Jefferson--and about 40,000 acres offshore Beaumont and Port Arthur, Texas.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminals Project Database can read detailed reports on the onshore and offshore portions.

The project is located near major industrial emitters in the Houston Ship Channel and Beaumont/Port Arthur areas, providing industries such as refining, steel, chemicals and manufacturing with a decarbonization outlet.

"Commercial CCS solutions are critical for hard-to-abate industries to meet their climate ambitions while maintaining their activity," said Grete Tveit, senior vice president for Equinor's Low Carbon Solutions business, in a press release. "Our experience from developing carbon storage projects can help advance decarbonization efforts in one of the largest industrial corridors in the U.S."

Industrial Info is tracking about $117 million worth of CCS-related projects in the U.S., both onshore and offshore, more than 65% of which is in Texas and Louisiana. Subscribers to the GMI Project Database can click here to see a full list.

This includes Exxon Mobil Corporation's (NYSE:XOM) (Irving, Texas) proposed blue hydrogen and carbon-capture development in Baytown, Texas, which would utilize Honeywell International's (NASDAQ:HON) (Charlotte, North Carolina) CO2 Fractionation and Hydrogen Purification System to store up to 10 million metric tons of CO2 per year from the 1 billion-cubic-foot-per-day hydrogen facility. Subscribers to the GMI Chemical Processing Project Database can click here to read more information.

Meanwhile, Fidelis New Energy LLC (Houston, Texas) is developing a renewable fuels complex in the Port of Greater Baton Rouge, Louisiana, which would include a carbon-capture and sequestration unit designed to capture about 1 million tons per year of CO2. Click here for the project report.

Subscribers to Industrial Info's GMI project and plant databases can click here for a full list of detailed reports for projects mentioned in this article and here for a full list of related profiles.

Louisiana is becoming a leader in CCS development. For more information, see Industrial Info's March 8, 2023, article - Louisiana Emerges as Leader in Carbon Capture, Utilization and Storage.

For more information on CCS spending in the U.S., see August 1, 2023, article - Big Push in CCS Spending Overshadows Concerns About Its Green Potential, and July 10, 2023, article - Big Spending Plans for CCS May Fall Short of What's Needed for Net Zero.

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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).