Carbonvert, Castex Execute Agreement for Offshore CO2 Storage
The joint venture executes an operating agreement for offshore carbon capture and storage at the Cameron Parish CO2 hub.
Carbonvert and Castex Carbon Solutions have followed through on an operating agreement with Louisiana’s state government to develop a 24,000-acre plot of land to permanently sequester CO2. Castex will combine its subsurface operational expertise with Carbonvert’s experience in carbon capture and storage (CCS) projects to develop the Cameron Parish CO2 Hub.
“Castex and Carbonvert look forward to developing the first offshore CO2 storage hub in Louisiana,” said Castex EVP & CFO, Aaron Killian. “Our Cameron Parish project combines premier geologic storage attributes with existing midstream infrastructure to provide a range of tailored solutions to the adjacent industrial corridors in need of economically viable CO2 storage.”
Castex has conducted a series of technical and subsurface studies to determine the carbon storage capacity at the Cameron Parish site. The hub will have a storage capacity of more than 250 million metric tons of CO2 and will sequester carbon from local industrial emitters, primarily ammonia and LNG facilities. Carbonvert, or the “JV Partners”, will seek opportunities to repurpose existing pipeline infrastructure to support the CCS hub.
The JV Partners structured a 50/50 joint venture agreement to identify and advance CCS projects within Louisiana in August 2022. Carbonvert, through the development of the Cameron Parish CO2 hub, looks to promote economic and environmental benefits in the Cameron and Calcasieu Parishes. Castex will serve as the primary operator for carbon sequestration at the Cameron Parish hub.
"We firmly believe our Cameron Parish offshore project will help shape Louisiana’s low carbon future,” said Carbonvert CEO, Alex Tiller. “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.”
