Texan companies take another decisive step to develop CCS technologies
Wed, May 11, 2022
Texas continues to lead the way in the development of carbon capture and storage (CCS) technologies. Last week, Chevron, Talos, and Carbonvert announced a memorandum of understanding to expand a joint venture between Talos and Carbonvert to develop the Bayou Bend CCS offshore carbon capture and sequestration hub.
Located in Port Arthur, Texas, the hub is the first and only offshore lease in the U.S. for carbon sequestration. The expanded partnership marks yet another step forward, positioning Texas as a leader in the carbon capture and storage industry.
Chris Powers, Vice President of Carbon Capture, Utilization, and Storage (CCUS) for Chevron New Energies said about the project, “Since our establishment of Chevron New Energies, we have been consistent in our communication that partnership will be required to grow successful lower carbon businesses. This venture is an example of the potential that partnering can have in moving large-scale lower-carbon projects forward.”
The sequestration hub, which has the potential to sequester between 225 and 275 million metric tons of carbon dioxide from the atmosphere, is one of several innovative CCS projects currently being developed in Texas by oil and natural gas companies.
At the beginning of March, Exxon Mobil announced it planned to build the world’s largest carbon capture and storage project at its facility in Baytown, Texas, as part of a cross-industry effort to create a $100 billion carbon capture and storage zone in Houston.
In addition to Exxon, other companies such as Shell, Phillips 66, and Marathon Petroleum are also supporting the initiative. The so-called Houston Hub would have the capacity to capture and store up to 50 million metric tons of carbon dioxide per year by 2030 and a capacity of 100 million tons by 2040.
Importantly, Texas regulators are also taking decisive steps to encourage CCS technology. The Railroad Commission (RCC) is in the process of amending the permitting process for carbon capture and storage wells to speed up the approval process for projects which must currently seek approval through the Environmental Protection Agency.
These actions, and Chevron, Talos, and Carbonvert’s most recent announcement, all signal that Texas is continuing to hold its title as an energy innovation hub, leading to protect our environment and to responsibly develop our resources.