Denbury inks new C02 transportation and storage agreements

Denbury Inc. has signed several new agreements related to its carbon capture, utilization and storage (CCUS) business, according to a news release.

Chris Kendall, Denbury’s president and CEO, commented, “Today, we are announcing a number of new CCUS agreements, including CO₂ transportation agreements for customers in the emerging eFuels industry, our first dedicated CO₂ sequestration site in the Rocky Mountain region, and two new carbon capture technology investments. These agreements are focused on our strategy of rapidly capturing the CCUS market and expanding our CO₂ service offering. The growth potential of our CCUS business is transformational, and our Company is fully aligned and focused on delivering innovative carbon solutions for a sustainable future.”

New CO₂ transportation and/or storage agreements bring cumulative to more than 22 Mmtpa

• The Company recently executed an agreement with HIF Global, a leading eFuels company that is targeting to build a 200 million gallon per year carbon-neutral eGasoline and eMethanol facility by 2027, with the potential to decarbonize the emissions equivalent of over 400,000 vehicles. Denbury and HIF are actively engaged in sourcing 2 million metric tons per year (Mmtpa) of industrial-sourced CO₂ for transport and utilization at the planned Matagorda County, Texas, facility.
• Denbury also executed an agreement with Monarch Energy Development LLC, a hydrogen and eFuels project developer. Monarch currently has eFuels production facilities under development in Freeport and Beaumont, Texas, with estimated first production by 2026. Under the agreement, Denbury will transport 0.4 Mmtpa of industrial-sourced CO₂ to be used as a feedstock in the production process.

Initial dedicated CO₂ storage site in Rocky Mountain region

• In early 2023, the Company finalized a definitive agreement for the right to develop a dedicated CO₂ sequestration site on nearly 15,000 acres in Campbell County, Wyoming, directly underneath the Company’s Greencore CO₂ Pipeline. Denbury estimates potential CO₂ sequestration capacity of the site (now named Corvus) to be 40 million metric tons.

Carbon capture technology investments expand CO₂ service offering

• Denbury recently invested in ION Clean Energy, an industry leader in liquid solvent technologies that capture over 95% of CO₂ emissions while significantly reducing operating and capital costs for large-scale, post combustion CO₂ emissions. https://ioncleanenergy.com/
• The Company also recently completed an investment in Aqualung Carbon Capture, a leader in membrane CO₂ capture and separation technology. The patented technology drives a passive CO₂ separation, resulting in ability to economically capture 95%+ of CO₂ emissions across low (<3%) and high (30%+) CO₂ concentration levels. This highly scalable technology targets a wide range of both small and large sources of emissions. https://aqualung-cc.com/

Matt Dahan, senior vice president of CCUS Technology for Denbury stated, “We believe both Aqualung and ION are on the leading edge of reducing the cost of capture for a wide range of types and sizes of stationary CO₂ emissions facilities. Our investments in these emerging technologies will bring additional transport and sequestration opportunities to Denbury, and we look forward to working with both.”