GEF - Denbury Lapis Energy form JV on carbon sequestration project

2023-06-27 10:53:45 ET

Denbury ( NYSE: DEN ) said Tuesday it formed a 50-50 joint venture with Lapis Energy to develop and operate a carbon capture project at the latter's 14K-acre site in Louisiana.

Lapis said it will lead the Libra CO2 project's permitting process and initial construction, while Denbury ( DEN ) assumes operatorship and construction management upon commencement of injection, anticipated in 2027.

The JV partners said the project site has the potential to hold at least 200M metric tons of carbon dioxide and, because of its close proximity to industrial hubs, has the potential to become a regional hub decarbonization site.

Depending on the scale and pace of emissions agreements dedicated to the site, Denbury ( DEN ) said it intends to connect the sequestration site to its existing CO2 pipeline network in southeast Louisiana with a 45-mile pipeline connection.

Denbury ( DEN ) also unveiled an agreement with Greif ( GEF ) subsidiary Soterra for the right to develop a dedicated CO2 sequestration site in Louisiana less than five miles from the company's NEJD CO2 pipeline.

Denbury ( DEN ) estimates potential carbon sequestration capacity at the site of at least 100M metric tons and anticipates the site could be ready for first CO2 injection as early as 2026.

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