Talos Energy Inc. announced on June 8 that it has formed an exclusive joint venture with Storegga Geotechnologies Limited to source, evaluate and develop carbon capture and storage (CCS) project opportunities on the United States Gulf Coast and Gulf of Mexico (GOM), including state and federal waters offshore Texas, Louisiana, Mississippi and Alabama. The Partners are actively exploring opportunities with counterparties along the CCS value chain. (Logo quoted from Yahoo’s image)
Under the joint venture framework, the Partners, in collaboration, will originate and mature CCS ventures with emitters, infrastructure providers, service companies and financing partners, among others. The joint venture combines the strengths of Talos's offshore operational and sub-surface expertise with Storegga's leading end-to-end CCS project experience.
Under the terms of the agreement, as individual CCS projects mature in the future, each will be ring-fenced with separate operating agreements, financing structures and the possibility of additional working interest partners. The agreement requires zero up front capital commitments, and the Partnership will share costs 50/50 in the initial phases. Talos is designated as the operating partner of the joint venture.
Storegga is a European leader in CCS as a lead developer of the Acorn CCS and Acorn Hydrogen Projects and also is actively developing a cutting edge direct carbon air capture (DAC) project. The Acorn project is the most advanced large-scale CCS project in the United Kingdom with final investment decision (FID) expected in 2022.
As one of the leading independent operators in the Gulf Coast and GOM, Talos's core skill set naturally complements CCS project requirements, particularly with respect to CO2 injection and storage, including geology and geophysics, reservoir engineering, drilling and completion operational excellence, regulatory processes and inland water and offshore logistics.
The United States Gulf Coast is a prime location for offshore carbon capture projects in the U.S. The area contains some of the nation's highest concentrations of power generation, industrial and petrochemical facilities, including 100+ facilities emitting more than 1,000,000 tons of CO2 emissions per year. In addition to the large industrial multi-national companies and conglomerates present in the region, there is also a high density of smaller private and "middle-market" industrial sites which may require CCS solutions in the future.
This critical industrial network is immediately adjacent to a large natural carbon storage province located offshore in shallow waters in the Gulf of Mexico Shelf and potentially holding over 30 gigatons of available storage in geological structures with the necessary rock properties and fluid type to effectively store significant CO2 volumes.
With its long history as a prolific energy producing region, the Gulf of Mexico also offers vast infrastructure and service networks as well as a capable labor force. These essential technical and commercial elements can supply the growing demand for large-scale CCS emissions solutions in one of the biggest industrial regions in the world.
(IRuniverse)
