Denbury, the independent energy company, focused on carbon dioxide solutions, announced this Tuesday it has secured an agreement with Mitsubishi Corporation for the transportation, storage, and overall management of CO2.
The agreement will push both companies on their carbon reduction goals. It will also provide a platform for CO2 management, therefore providing the sector with world-leading solutions in a much-needed industry.
Particularly, the agreement will start with the capturing of CO2 on Mitsubishi’s ammonia-producing project, in Gulf Coast. The company intends to introduce its fuel ammonia to the Japanese market by the latter half of the decade.
Moreover, the project would produce around 1 million metric tons per annum (mmtpa); with associated CO2 emissions of around 1.8 mmtpa. However, more projects are likely to follow. Denbury will then sequester and transport all of the CO2 captured at the Mitsubishi project.
Denbury will then utilize CO2 on its enhanced oil recovery activities. The company may also store the CO2 on geologic sites, according to the statement. The agreement has an initial period of 20 years, with the possibility of extending it further. In fact, total volumes under the arrangement could surpass 50 million metric tons of CO2.
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Denbury, a true leader in CO2 management
On the other hand, the Mitsubishi ammonia facilities will start construction in a site close to Denbury’s CO2 Green Pipeline system; which will allow safe transportation of the liquids. Denbury is indeed a true leader in the CO2 transportation field.
In fact, for over two decades, the company has maintained a unique strategic focus on utilizing CO2 for enhanced oil recovery. Since 2013, it has been active in carbon capture and storage solutions, through the injection of captured industrial-sourced CO2.
Furthermore, the company currently injects over three million tons of captured industrial-sourced CO2 annually, and its objective is to fully offset its Scope 1, 2, and 3 CO2 emissions within this decade. Firstly, it would do so by increasing the amount of captured industrial-sourced CO2 used in its operations.
Finally, about the agreement with Mitsubishi, Chris Kendall, Denbury’s President, and Chief Executive Officer, commented. “We are excited to deliver the first of what we believe will be many CO2 transport and storage deals with industrial customers along our extensive infrastructure footprint. We look forward to working with Mitsubishi on this project, which represents a significant step in the creation of substantial value through our Carbon Solutions business.”