CapturePoint LLC and affiliate CapturePoint Solutions LLC have signed a revised Letter of Intent with an affiliate of Energy Transfer LP that provides for the joint development of a carbon capture and permanent deep underground storage project in Louisiana.
The companies also signed a definitive CO2 Offtake Agreement committing CO2 from Energy Transfer’s Haynesville natural gas treating facilities, according to a news release.
The revised LOI and accompanying CO2 Offtake Agreement dedicate CO2 that would otherwise be emitted from Energy Transfer’s Haynesville natural gas midstream facilities to CapturePoint’s Central Louisiana Regional Carbon Storage Hub (CENLA Hub) and provide Energy Transfer the right to participate in a joint venture that will own and operate the CENLA Hub. The LOI also provides a framework for CapturePoint and Energy Transfer to collaborate regarding the capture and sequestration of additional CO2 from other Energy Transfer facilities in Louisiana.
In an interview earlier this year, CapturePoint CEO Tracy Evans said the expected cost of the CENLA Hub is $600m.
The CENLA Hub is one of the largest onshore deep underground carbon storage centers under development in the United States with the capacity to permanently secure millions of tons of CO2 annually that would otherwise be released into the atmosphere. These agreements provide the foundation for the capture and storage of up to two million tons of CO2 annually at the CENLA Hub.
“Energy Transfer is one of the largest and most diversified midstream energy companies in North America,” noted Tracy Evans, CEO of CapturePoint. “The revised LOI and the CO2 Offtake Agreement reflect Energy Transfer’s recognition of the CENLA Hub as one of the most promising deep underground CO2 storage sites in the nation. We are excited to have this significant commitment from Energy Transfer.”
Recent test well data from the CENLA Hub demonstrates that the unique geology of the region could permanently sequester a total of several hundred million tons of CO2. The Louisiana Department of Natural Resources is currently reviewing CapturePoint’s permit applications for CENLA Hub Class VI CO2 injection sites in Vernon and Rapides Parishes.
“We want to thank our partners in the local CENLA Hub communities for their strong support for this important economic and environmental development,” concluded Mr. Evans. “Our team at CapturePoint is working to deliver a leading-edge project that will define the future of carbon management in the United States.”
