U.S. CCS Development Gains Steam

Researched by Industrial Info Resources (Sugar Land, Texas)--Carbon sequestration/storage and carbon capture and storage (CCS) technology in general are key to furthering the energy transition as a method of reducing carbon dioxide (CO2) emissions. Industrial Info is tracking billions' worth of CCS-related projects under construction across the U.S., including those attributed to major energy players such as Exxon Mobil Corporation (NYSE:XOM) (Spring, Texas).

On Thursday, ExxonMobil said it executed the largest offshore CO2 storage lease (more than 271,000 acres) in the U.S. with the Texas General Land Office (GLO).

A storage project offshore the U.S. Gulf Coast in state waters leased by the GLO already is being developed: Chevron Corporation (NYSE:CVX) (San Ramon, California) is the operator and 50% owner of the Bayou Bend carbon sequestration hub, located offshore Beaumont and Port Arthur. The project, which also features an onshore component, is designed to provide a carbon transportation and storage solution for industrial emitters in the Houston Ship Channel and nearby region. The onshore and offshore portions will provide more than 1 billion metric tons of carbon storage capacity.

At the Gastech conference in Houston in September, Chris Powers, vice president of carbon capture, utilization and storage (CCUS) for Chevron New Energies, said the project has reached a key regulatory milestone: the U.S. Environmental Protection Agency (EPA) gave Chevron's permit application for an offshore well used to inject the CO2 underground an "administratively complete" status--meaning it contains all the information required for processing. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can read detailed reports on the offshore and onshore portions of the project.

Meanwhile, ExxonMobil is at work on CCS projects elsewhere in the U.S.: its Shute Creek carbon-capture and storage project in Wyoming entails adding a disposal well for underground storage of CO2 emissions emanating from natural gas production at the Shute Creek Gas Plant in the Labarge Gas Fields. The full Shute Creek project, which also features carbon capture and transport elements, is expected to wrap up in mid-2025. Subscribers can learn more by viewing the related project reports.

As part of a 52:48 joint venture with Mitsui & Co., Ltd. (Tokyo, Japan), CF Industries Holdings Incorporated (NYSE:CF) (Deerfield, Illinois) is in the process of adding a CO2 dehydration and compression unit at its Donaldsonville, Louisiana, complex--designed to permanently capture and sequester 2 million tons per year of CO2 byproduct emitted from plant production. The proposed $600 million project, which is expected to wrap up around the end of 2025, also will support a 1.7 million-ton-per-year blue ammonia project at the plant. Subscribers can click here to read the detailed project report.

ExxonMobil has an agreement in place to transport and store the Donaldsonville facilities' total CO2 recovery (2 million tons per year).

For more information on CCS technology and other CO2-reduction efforts across the U.S., see September 17, 2024, article - U.S. DOE Bolsters CO2-Reduction Projects in Kentucky and Texas, and June 17, 2024, article - SLB: CCS Is Necessary for Net Zero.

Canada also is home to a burgeoning CCS market. For more information, see June 27, 2024, article - Shell's Polaris Project to Join Canada's Growing CCS Market.

Subscribers to the GMI Database can click here for a full list of detailed reports for projects mentioned in this article and here for a full list of related plant profiles.

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).