Under the exclusive joint venture framework, the partners will source, evaluate, and develop potential CCS projects in areas including state and federal waters offshore Texas, Louisiana, Mississippi, and Alabama.
Additionally, the firms are exploring potential opportunities with counterparties along the CCS value chain.
Storegga CEO Nick Cooper said: “The rapid deployment of CCS and carbon management value chains requires appropriate geological storage for carbon sequestration, access to emitters and existing infrastructure, and partnerships with experienced, like-minded organizations that share the desire to make this happen.”
The collaboration will combine Talos’s offshore operational and sub-surface expertise with Storegga’s end-to-end CCS project experience.
Once the individual CCS projects are matured, each of the projects will be designated with separate operating agreements, financing structures and the possibility of additional partners.
The two companies will equally share costs in the initial phases while Talos will serve as operating partner of the joint venture.
Talos president and CEO Timothy S Duncan said: “We have a responsibility to deliver affordable, reliable energy with the lowest carbon footprint possible, and this joint venture allows us to expand our impact beyond our own assets to provide solutions for removing emissions from critical industrial sectors in our backyard.”
The US Gulf Coast area comprises some of the country’s major power generation, industrial and petrochemical facilities.
According to Talos, more than 100 of these projects emit more than one million tonnes of CO₂ emissions per year.