Storegga, Talos to develop CCS for Freeport LNG
SUMMARY
The pair have signed a letter of intent to form a joint venture for the project, due to start storing CO2 in late 2024
By Joseph MurphyUK carbon capture and storage (CCS) specialist Storegga has teamed up with Talos Energy to sequester CO2 from the Freeport LNG facility in Texas offshore, the companies said on November 16.
The pair have signed a letter of intent to form a joint venture for the project, due to start storing CO2 in late 2024. Storegga will bring its experience in CCS to bear to develop the infrastructure, while Talos will use its expertise in oil and gas geology to serve as project manager and operator.
CO2 will be stored less than half a mile (0.8 km) from the Freeport LNG facility, at a Freeport-owned sequestration site with up to a 30-year injection term. The companies noted that the site was also within 40 km of industrial facilities responsible for a further 15mn metric tons/year of emissions that could become customers.
"Storegga and Talos have built a strong partnership that leverages the expertise of each company for the rapid, cost-effective delivery of CCS clusters in the US Gulf Coast region," Storegga CEO Nick Cooper commented, adding that it would be the first of several CCS projects the pair would work on in the area.
The Gulf Coast region is both a significant source of US industrial emissions and provides good conditions for their storage offshore, a recent study led by the University of Austin concluded. Storegga and Talos announced they would evaluate projects in the area in June. The latest announcement comes less than a month after Storegga's plan for a CCS facility in Scotland suffered a major setback when it failed to secure state funding from the UK government.
"The entrepreneurial collaboration of our teams allowed for the development of a unique, stand-alone carbon sequestration solution, which provides proof of concept to our broader CCS portfolio and is complementary to our larger hub-based project in Jefferson county," Talos CEO Timothy Duncan said. "It also illustrates the creative solutions that Talos and Storegga can offer to potential CCS project partners."
Freeport LNG CEO Michael Smith remarked that the LNG plant already produced 90% less emissions than other such facilities as it is all-electric driven rather than using gas turbines. Freeport LNG's current capacity is 15.5mn mt/yr of LNG, but this is due to rise to 20mn mt/yr under a shovel-ready plan to add a fourth train. Japan's JERA this week announced it was expanding its stake in the facility for $2.5bn.
