Denbury Announces New CCUS Agreements and Provides 2023 CCUS Goals
Denbury Inc. (NYSE: DEN) has announced key agreements to advance its carbon capture, utilization, and storage (CCUS) business. These include CO2 transportation agreements with HIF Global and Monarch Energy, targeting the emerging eFuels market. The company also revealed its first dedicated CO2 sequestration site in Campbell County, Wyoming, with an estimated capacity of 40 million metric tons. Furthermore, investments in ION Clean Energy and Aqualung Carbon Capture aim to enhance CO2 capture technologies. Denbury's 2023 goals include expanding its CO2 storage portfolio and securing additional agreements to cover 30 million metric tons per annum by year-end.
- Agreements for CO2 transportation with HIF Global and Monarch Energy Development LLC, enhancing market reach.
- Establishment of a dedicated CO2 sequestration site with a capacity of 40 million metric tons.
- Investments in advanced CO2 capture technologies, likely improving operational efficiency and market competitiveness.
- Strategic goal to cover CO2 emissions totaling 30 million metric tons per annum by the end of 2023.
- None.
New CO2 transportation and/or storage agreements bring cumulative to more than 22 Mmtpa
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The Company recently executed an agreement with HIF Global, a leading eFuels company that is targeting to build a 200 million gallon per year carbon-neutral eGasoline and eMethanol facility by 2027, with the potential to decarbonize the emissions equivalent of over 400,000 vehicles.
Denbury and HIF are actively engaged in sourcing 2 million metric tons per year (“Mmtpa”) of industrial-sourced CO2 for transport and utilization at the plannedMatagorda County, Texas , facility. -
Denbury also executed an agreement withMonarch Energy Development LLC , a hydrogen and eFuels project developer. Monarch currently has eFuels production facilities under development inFreeport andBeaumont, Texas , with estimated first production by 2026. Under the agreement,Denbury will transport 0.4 Mmtpa of industrial-sourced CO2 to be used as a feedstock in the production process.
Initial dedicated CO2 storage site in
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In early 2023, the Company finalized a definitive agreement for the right to develop a dedicated CO2 sequestration site on nearly 15,000 acres in
Campbell County, Wyoming , directly underneath the Company’s Greencore CO2 Pipeline.Denbury estimates potential CO2 sequestration capacity of the site (now named Corvus) to be 40 million metric tons.
Carbon capture technology investments expand CO2 service offering
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Denbury recently invested in ION Clean Energy, an industry leader in liquid solvent technologies that capture over95% of CO2 emissions while significantly reducing operating and capital costs for large-scale, post combustion CO2 emissions. https://ioncleanenergy.com/ -
The Company also recently completed an investment in Aqualung Carbon Capture, a leader in membrane CO2 capture and separation technology. The patented technology drives a passive CO2 separation, resulting in ability to economically capture
95% + of CO2 emissions across low (<3% ) and high (30% +) CO2 concentration levels. This highly scalable technology targets a wide range of both small and large sources of emissions. https://aqualung-cc.com/
2023 CCUS GOALS
- Execute additional CO2 transportation and/or storage agreements from both brownfield and greenfield projects, so that by the end of 2023, Denbury’s cumulative agreements will cover CO2 emissions totaling 30 Mmtpa.
- Expand the Company’s dedicated CO2 storage portfolio with the acquisition of additional sequestration sites in strategic locations near areas with high concentrations of current and future CO2 emissions.
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Submit Class VI permits to the
Environmental Protection Agency (“EPA”) on at least 4 of the Company’s CO2 sequestration sites.Denbury also targets drilling at least 2 stratigraphic test wells in 2023 on its CO2 sequestration sites. Drilling has recently commenced on the Company’s Orion site inAlabama . - Enhance Denbury’s CCUS business with strategic partnerships and equity investments around the entire value chain of CCUS.
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Forward-Looking Statements: The data and/or statements contained above that are not historical facts, including estimated future CO2 emissions reductions and volumes of CO2 expected to be transported, stored, or utilized, and other plans and objectives for Denbury’s future carbon capture, utilization and storage activities (“CCUS”) are all forward-looking statements, as that term is defined in Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve a number of risks and uncertainties.
Such forward-looking information is based upon management’s current plans, expectations, estimates, and assumptions that could significantly and adversely be affected by various factors discussed below, many of which are beyond our control. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by us or on our behalf.
Among the factors that could cause actual results of our CCUS activities to differ materially from the projections herein are: achieving successful completion of technical and feasibility evaluations; in certain cases raising of funds sufficient to build and operate greenfield CCUS projects; the successful construction or installation of add-on or new facilities; and receipt of required regulatory approvals or classifications, along with the other variables and timing considerations and the risks and uncertainties set forth from time to time in the Company’s public reports, filings and public statements including, without limitation, the Company’s 2022 Annual Report on Form 10-K to be filed with the
Statement Regarding CCUS “Agreements”: References in this presentation to CCUS “Agreements” refers to both executed definitive agreements and executed term sheets or letters of intent covering various CCUS arrangements. In the case of arrangements covered by term sheets or letters of intent, those arrangements are subject to the negotiation and execution of definitive enforceable agreements.
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