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Released August 31, 2022 | SUGAR LAND
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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--With the passage of the oddly named Inflation Reduction Act (IRA) the focus on carbon capture, usage and storage (CCUS) is expected to explode in the next 10 years due to the act's increased funding for such endeavors. It is very timely that Enverus Intelligence Research (EIR), a subsidiary of Enverus, a data analytics and software-as-a-service (SaaS) technology company, would release a detailed inventory of CCUS storage projects and capacities days after the IRA's passage.
EIR documents 10 million tons per annum of sequestration currently in operation around the globe--just 3% of what is planned. The report also anoints southern Louisiana and its Oligocene-Miocene formation, with clean sand aquifers, as the capitol of carbon storage--or maybe Mecca would better describe the place where carbon dioxide (CO2) molecules will soon be pilgrimaging by the millions of tons.
With supermajors like Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), BP (NYSE:BP) (London, England) and Occidental Petroleum (NYSE:OXY) (Houston, Texas) racing to build carbon capture and storage (CCS) capacity, EIR sees the stage being set for rapid expansion of locations in North America and in European countries bordering the North Sea.
Based on data collected through December of 2021, EIR finds CCUS capacity, both operational and planned, totaling 280 million tonnes per year, or 63% of global capture capacity, set for North America, with European equivalents accounting for 29%. Louisiana alone accounts for eight planned sequestration projects, amounting to 2 billion tonnes of combined disclosed storage, compared to current worldwide total in-use capacity of 10 million tonnes per year.
Interestingly, as Enverus performed its own subsurface modeling on the Louisiana locations, it found only 1.5 billion tonnes suggested actual capacity, 30% less than operator projections. Even with lower-than-reported numbers, they designated Denbury Incorporated's (Plano, Texas) Louisiana site as having the greatest potential at 425 million tonnes. Subscribers to Industrial Info's Global Market Intelligence Oil & Gas Project Database can click here for a related project report.
Another plus factor for Louisiana is its existing CO2 pipeline capacity. While capacity everywhere must be exponentially increased, Geoscience Product Manager at Enverus Graham Bain observes, "Louisiana has the sixth-longest section of active CO2 pipeline (317 miles) in the U. S., but being a hotbed of recent CCS project announcements, there will either need to be new pipeline built or retrofitting of old ones. From a job creation perspective, the 160-mile-long Bayou Bridge crude oil pipeline, which added 50% more capacity, created 2,500 construction jobs."
When asked what would be required to capture 100% of U.S. carbon emissions, Bain expanded the conversation. "It depends on whether you are talking about capture capacity or storage capacity and how you are capturing/storing the CO2. You could build out enough capture capacity through forestation, direct air capture and at-site capture, but all are dependent on economic feasibility. With at-site capture, costs are tied to the volume, purity and concentration of carbon dioxide in the gas stream. Point sources that produce a relatively pure CO2 stream are the cheapest to capture, which includes natural gas processing, ammonia and petrochemical production where CO2 concentrations typically exceed 90%."
He pointed out that there are other means of storage, including forestation, algae, deep ocean reservoirs and elsewhere.
Kent Satterlee, executive director of the Gulf Offshore Research Institute (GORI) (Mandeville, Louisiana), which is working to repurpose retired offshore platforms for uses including the aforementioned CCS, says the IRA will likely "accelerate the repurposing of offshore oil and gas platforms to clean energy and climate mitigation. GORI, along with Blue Silo Aquaculture (Mandeville), is studying how to grow fish, bivalves and seaweed next to the platforms to harvest food from the ocean and sequester carbon."
One example of the expected increase in CCS activity comes from Occidental Petroleum Corporation (NYSE:OXY) (Houston, Texas). Oxy and its subsidiary 1PointFive will begin construction on their first large-scale direct air capture (DAC) plant near Odessa, Texas, in proximity to the company's Permian Basin acreage and infrastructure.
Oxy states that the plant will be the largest of its kind, designed at the start to capture up to 500,000 metric tons of CO2 per year, with scalability available up to 1 million metric tons per year. Plans are for 1PointFive to deploy 70 DAC facilities worldwide by 2035 assuming current compliance and market scenarios continue. Subscribers can click here for related project reports.
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).
EIR documents 10 million tons per annum of sequestration currently in operation around the globe--just 3% of what is planned. The report also anoints southern Louisiana and its Oligocene-Miocene formation, with clean sand aquifers, as the capitol of carbon storage--or maybe Mecca would better describe the place where carbon dioxide (CO2) molecules will soon be pilgrimaging by the millions of tons.
With supermajors like Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), BP (NYSE:BP) (London, England) and Occidental Petroleum (NYSE:OXY) (Houston, Texas) racing to build carbon capture and storage (CCS) capacity, EIR sees the stage being set for rapid expansion of locations in North America and in European countries bordering the North Sea.
Based on data collected through December of 2021, EIR finds CCUS capacity, both operational and planned, totaling 280 million tonnes per year, or 63% of global capture capacity, set for North America, with European equivalents accounting for 29%. Louisiana alone accounts for eight planned sequestration projects, amounting to 2 billion tonnes of combined disclosed storage, compared to current worldwide total in-use capacity of 10 million tonnes per year.
Interestingly, as Enverus performed its own subsurface modeling on the Louisiana locations, it found only 1.5 billion tonnes suggested actual capacity, 30% less than operator projections. Even with lower-than-reported numbers, they designated Denbury Incorporated's (Plano, Texas) Louisiana site as having the greatest potential at 425 million tonnes. Subscribers to Industrial Info's Global Market Intelligence Oil & Gas Project Database can click here for a related project report.
Another plus factor for Louisiana is its existing CO2 pipeline capacity. While capacity everywhere must be exponentially increased, Geoscience Product Manager at Enverus Graham Bain observes, "Louisiana has the sixth-longest section of active CO2 pipeline (317 miles) in the U. S., but being a hotbed of recent CCS project announcements, there will either need to be new pipeline built or retrofitting of old ones. From a job creation perspective, the 160-mile-long Bayou Bridge crude oil pipeline, which added 50% more capacity, created 2,500 construction jobs."
When asked what would be required to capture 100% of U.S. carbon emissions, Bain expanded the conversation. "It depends on whether you are talking about capture capacity or storage capacity and how you are capturing/storing the CO2. You could build out enough capture capacity through forestation, direct air capture and at-site capture, but all are dependent on economic feasibility. With at-site capture, costs are tied to the volume, purity and concentration of carbon dioxide in the gas stream. Point sources that produce a relatively pure CO2 stream are the cheapest to capture, which includes natural gas processing, ammonia and petrochemical production where CO2 concentrations typically exceed 90%."
He pointed out that there are other means of storage, including forestation, algae, deep ocean reservoirs and elsewhere.
Kent Satterlee, executive director of the Gulf Offshore Research Institute (GORI) (Mandeville, Louisiana), which is working to repurpose retired offshore platforms for uses including the aforementioned CCS, says the IRA will likely "accelerate the repurposing of offshore oil and gas platforms to clean energy and climate mitigation. GORI, along with Blue Silo Aquaculture (Mandeville), is studying how to grow fish, bivalves and seaweed next to the platforms to harvest food from the ocean and sequester carbon."
One example of the expected increase in CCS activity comes from Occidental Petroleum Corporation (NYSE:OXY) (Houston, Texas). Oxy and its subsidiary 1PointFive will begin construction on their first large-scale direct air capture (DAC) plant near Odessa, Texas, in proximity to the company's Permian Basin acreage and infrastructure.
Oxy states that the plant will be the largest of its kind, designed at the start to capture up to 500,000 metric tons of CO2 per year, with scalability available up to 1 million metric tons per year. Plans are for 1PointFive to deploy 70 DAC facilities worldwide by 2035 assuming current compliance and market scenarios continue. Subscribers can click here for related project reports.
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).
