CapturePoint Announces Agreements with Energy Transfer for Carbon Capture and Storage in Louisiana

Rhea-AI Summary

CapturePoint, based in Allen, Texas, has formalized agreements with Energy Transfer LP for a carbon capture and storage project in Louisiana. The collaboration includes a revised Letter of Intent and a CO2 Offtake Agreement dedicating CO2 from Energy Transfer's facilities to the Central Louisiana Regional Carbon Storage Hub. The project has the capacity to store millions of tons of CO2 annually and is recognized as a key storage site by Energy Transfer. Recent data shows the potential to sequester hundreds of millions of tons of CO2. The project is awaiting permit approvals from the Louisiana Department of Natural Resources.

Positive

• The agreements with Energy Transfer provide a solid foundation for the capture and storage of up to two million tons of CO2 annually at the Central Louisiana Regional Carbon Storage Hub.

• The project has the potential to permanently sequester several hundred million tons of CO2 due to the unique geology of the region, as indicated by recent test well data.

• The collaboration reflects Energy Transfer's recognition of the Central Louisiana Regional Carbon Storage Hub as a promising deep underground CO2 storage site, contributing to the project's significance.

Negative

• The project is currently awaiting permit approvals from the Louisiana Department of Natural Resources, which might introduce delays or uncertainties in the development timeline.

Agreements formalize a joint development framework and dedication of CO₂ from additional Energy Transfer facilities in Louisiana

ALLEN, Texas--(BUSINESS WIRE)-- CapturePoint LLC and affiliate CapturePoint Solutions LLC, (together “CapturePoint”) with offices in Allen, Texas, today announced the signing of a revised Letter of Intent (LOI) with an affiliate of Energy Transfer LP (NYSE: ET), headquartered in Dallas, Texas, that provides for the joint development of a carbon capture and permanent deep underground storage project in Louisiana. The companies also signed a definitive CO₂ Offtake Agreement committing CO₂ from Energy Transfer’s Haynesville natural gas treating facilities.

The revised LOI and accompanying CO₂ Offtake Agreement dedicate CO₂ that would otherwise be emitted from Energy Transfer’s Haynesville natural gas midstream facilities to CapturePoint’s Central Louisiana Regional Carbon Storage Hub (CENLA Hub) and provide Energy Transfer the right to participate in a joint venture that will own and operate the CENLA Hub. The LOI also provides a framework for CapturePoint and Energy Transfer to collaborate regarding the capture and sequestration of additional CO₂ from other Energy Transfer facilities in Louisiana.

The CENLA Hub is one of the largest onshore deep underground carbon storage centers under development in the United States with the capacity to permanently secure millions of tons of CO₂ annually that would otherwise be released into the atmosphere. These agreements provide the foundation for the capture and storage of up to two million tons of CO₂ annually at the CENLA Hub.

“Energy Transfer is one of the largest and most diversified midstream energy companies in North America,” noted Tracy Evans, CEO of CapturePoint. “The revised LOI and the CO₂ Offtake Agreement reflect Energy Transfer’s recognition of the CENLA Hub as one of the most promising deep underground CO₂ storage sites in the nation. We are excited to have this significant commitment from Energy Transfer.”

Recent test well data from the CENLA Hub demonstrates that the unique geology of the region could permanently sequester a total of several hundred million tons of CO₂. The Louisiana Department of Natural Resources is currently reviewing CapturePoint’s permit applications for CENLA Hub Class VI CO₂ injection sites in Vernon and Rapides Parishes.

“We want to thank our partners in the local CENLA Hub communities for their strong support for this important economic and environmental development,” concluded Mr. Evans. “Our team at CapturePoint is working to deliver a leading-edge project that will define the future of carbon management in the United States.”

CapturePoint LLC and CapturePoint Solutions LLC (CPS) are privately held affiliated companies with offices in Allen, Texas, together “CapturePoint,” focusing on carbon capture and storage projects (CCUS), including the development of regional deep underground storage hubs for large scale capture of CO₂ emissions from industrial sources. In addition to the Central Louisiana Regional Carbon Capture Hub (CENLA Hub), CPS has projects under development in Colorado, Oklahoma, and Texas, and is evaluating potential ventures in several other states. CapturePoint funders include an affiliate of Mercuria Energy (Mercuria), other institutional investors and management. For more information, visit the CapturePoint website at www.capturepointllc.com.

Forward Looking Statements

This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. We cannot predict the length and ultimate impact of those risks. The firms mentioned herein undertake no obligation to update or revise any forward-looking statement to reflect new information or events, nor to update the status of federal or state permits or approvals or other external factors that may affect potential future operations.

The information contained in this press release is available on our website at: www.capturepointllc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508211036/en/

Investor Relations:

Tracy Evans, CEO

Aaron Johnson, CFO

832-300-8225

www.capturepointllc.com

Media Contact:

Sherry Tucker, VP for Communications,

Gov. Relations and Community Engagement

202-258-0700 (cell)

stucker@capturepointllc.com

Source: CapturePoint

FAQ

What agreements were announced by CapturePoint with Energy Transfer?

CapturePoint announced a revised Letter of Intent and a CO2 Offtake Agreement with an affiliate of Energy Transfer LP for a carbon capture and storage project in Louisiana.

What is the capacity of the Central Louisiana Regional Carbon Storage Hub for CO2 storage?

The hub has the capacity to permanently secure millions of tons of CO2 annually, with potential to sequester several hundred million tons due to unique regional geology.

Where is CapturePoint based?

CapturePoint is based in Allen, Texas.

What is the stock symbol of Energy Transfer LP?

The stock symbol for Energy Transfer LP is 'ET'.