Carbonvert and its joint venture (JV) partner Castex Energy, through its wholly owned subsidiary Castex Carbon Solutions, have signed operating agreement with the State of Louisiana in the US to develop an offshore carbon capture and storage (CCS) project.
As part of the Cameron Parish CO₂ Hub project, the partners will develop a 24,000-acre tract of land in Louisiana waters offshore Cameron Parish to permanently store CO₂.
Castex will act as the operator for the Cameron Parish CO₂ hub, which is expected to have a total storage capacity of more than 250 million metric tonnes of CO₂.
The project is expected to service the existing industrial emitters in the region and anticipated greenfield projects, particularly ammonia and LNG plants.
Furthermore, the JV partners are exploring opportunities to repurpose existing pipelines to support the project.
Last year, Carbonvert and Castex V signed a 50:50 JV deal to identify and advance CCS projects in Louisiana.
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In a press statement Carbonvert, said: “Acting as good stewards of all operated lands, while developing a globally competitive CCS hub, the JV Partners aim to bring both economic and environmental benefits to Cameron and Calcasieu Parishes and the broader surrounding region.
Carbonvert CEO Alex Tiller said the Cameron Parish offshore project will help shape low carbon future of Louisiana.
Tiller added: “Our CCS project will strengthen the local economy via funds from the newly adopted Louisiana Act No. 378, via the Federal Justice40 requirements, and by attracting new low-carbon focused businesses and related jobs. It will also provide a solution to clean up existing regional CO₂ emissions, which is a win for everyone.”