Talos Energy and Storegga announced this Tuesday a new joint venture focused on carbon capture and storage solutions (CCS); the joint venture will be particularly focused on seizing the market opportunities that the U.S. Gulf of Mexico offers.
Firstly, under the joint venture, the partners will collaborate on the origination and mature of carbon capture and storage solutions with emitters; also, infrastructure providers, service companies and financing partners, among others.
Secondly, the JV will leverage on Talos Energy ’s offshore operational and sub-surface expertise with Storegga’s leading end-to-end CCS project experience. However, the agreement also intends to allow both parties to search and mature separate operating agreements, financing structures and the possibility of additional working interest partners.
Thirdly, the joint venture will not require up front capital commitments from neither parties, however, Talos Energy and Storegga will share costs 50/50 in the initial phases. Talos is designated as the operating partner of the joint venture.
On the other hand, the reasoning behind the agreement was the huge potential of the U.S Gulf coast; the area contains some of the nation’s highest concentrations of industrial activity including 100+ facilities emitting more than 1,000,000 tons of CO2 emissions per year.
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Talos Energy and Storegga to seize huge CCS potential in the GOM
In addition, multinational conglomerates and mid-level companies are present in the region in need of CCS solutions; according to the statement, this critical industrial network is immediately adjacent to a large natural carbon storage province; located offshore in shallow waters in the Gulf of Mexico.
Moreover, this ideal geological area is potentially holding over 30 gigatons of available storage in geological substructures; all, with the necessary rock properties and fluid type to effectively store significant CO2 volumes.
Consequently, the Gulf of Mexico also offers vast infrastructure and service networks as well as a capable labor force; therefore being one key area for the development of a CCS value chain.
On the other hand, Talos Energy President and Chief Executive Officer Timothy S. Duncan, said. “Engaging in CCS projects along the Gulf Coast and shallow water Gulf of Mexico compliments our operating skill set; and diversifies the Company to seize this significant market opportunity.”
Finally, Storegga Chief Executive Officer Nick Cooper commented. “The US Gulf Coast offers significant potential for CCS and we are delighted to be partnering with Talos, a leading offshore operator. The joint venture demonstrates the international opportunities for Storegga as an independent developer of CCS infrastructure.”