The Texas General Land Office (GLO) awarded a Repsol-led partnership a contract for over 140,000 gross acres of pore space owned by of the Permanent School Fund (PSF) for CO2 storage located offshore of Corpus Christi, Texas.
The partnership, comprised of Repsol as the operator, Carbonvert (Carbonvert Inc.), MEPUSA (Mitsui E&P USA), and POSCO (POSCO International) bring together their collective experience across oil and gas, carbon capture and storage (CCS), industrial, and renewable projects in the United States and globally, according to a news release.
The project will be located in proximity to over 35 million metric tons per year of existing industrial emissions within 100 miles of the storage sites and more than 20 million metric tons per year of anticipated greenfield project emissions expected by 2035 to create a globally competitive carbon storage hub that can provide significant economic and environmental benefits to local communities, the Port of Corpus Christi, the State of Texas, and society at large. Equity interests in the partnership will be 40% Repsol (Operator), 40% Carbonvert, 10% MEPUSA and 10% POSCO.
On August 22nd, the Texas School Land Board unanimously approved awarding leases of the Port Arkansas North and Mustang Island tracts to the partnership, subject to the execution of final leases, which made the partnership the sole awardee in the region. Both tracts lie within Repsol’s licensed seismic database and based on the favorable subsurface geology of the area, Repsol expects the tracts to have a combined storage capacity of more than 600 million metric tons of CO2.
David Ramos, Geological Low Carbon Solutions Director for Repsol said: “Repsol is excited to lead and operate this project that will ultimately add to our strong presence in the country through our O&G operations and Low Carbon projects. Corpus Christi is a strategic region for Repsol pursuing Low Carbon developments where the Port of Corpus Christi plays an essential role for the industry. This project will provide significant contributions internationally as well to help grow our global low carbon portfolio.”
The consortium will now enter a negotiation stage with the Texas GLO based on terms the partnership submitted along with the original request by the GLO. Final terms are subject to approval of the Texas School Land Board.
Carbonvert CEO Alex Tiller sees this project as a boost for South Texas’ regional economy, “instilling confidence in local industries to launch CO2 capture initiatives and enhance resilience amid carbon-related global trade requirements and customers’ increasing demand for low-carbon products. It also attracts local investments from sectors like blue hydrogen and sustainable aviation fuel refining.” Tiller went on to point out that, “our project’s CO2 storage lease and operations will generate tremendous new revenues for the Permanent School Fund over the next 30 years for the Texas public school system–a win for the whole state.”
Kazuhiko Gomi, President & CEO of MEPUSA said: ”Mitsui sees the Corpus Christi region as an emerging hub for low carbon solutions and energy transition. Mitsui is excited to expand its CCS portfolio in the US to contribute to local industrial emissions reductions for Creating Sustainable Futures.”
Jhoon Soo Jho, Head of E&P Business Division for POSCO International: “I am pleased that through this project, we are taking the first step towards a successful business with trusted partners. This CCS project will make a significant contribution to achieve global carbon reduction and a sustainable society, making it a very meaningful endeavor. With this project as a catalyst, POSCO International will accelerate the expansion of its eco-friendly portfolio and continue to discover businesses that are in compliance with our corporate citizenship initiative for both the global and local communities.”
