Denbury ( NYSE: DEN ) on Tuesday signed an agreement with a large landowner in southwest Louisiana for future development and operation of a CO 2 sequestration site, a day after it announced a potential site in Mississippi.
Shares of the company rose as much as 4% in early morning trading.
Denbury's contracted CO 2 sequestration potential has now increased to about 2 billion metric tons following the addition of two new storage sites, the company said.
The Plano, Texas-based company estimates potential to store up to 250 million metric tons of CO 2 in the Louisiana site, with first injection planned as early as 2026, and could expand its Gulf Coast CO 2 network capacity to more than 150 million metric tons per year (Mmtpa).
Denbury, along with Weyerhaeuser ( WY ), on Monday inked a deal for the evaluation and development of a CO 2 sequestration site in Mississippi.
The company estimates its CO 2 transportation & storage service volumes will grow to between 15 and 25 Mmtpa on average in 2026, 30 – 40 Mmtpa in 2028, and 50 – 70 Mmtpa in 2030.
Denbury updated on its carbon capture, utilization, and storage (CCUS) business, saying it would be self-funding beginning as early as 2026/2027, with capital expenditures projected to average $200 to $250 million from 2023 to 2030.
The CCUS business is expected to have 2030 EBITDA between $650 million and $900 million, with the highest investment periods expected in 2024 and 2025.
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Denbury adds CO2 sequestration site in Louisiana, provides CCUS biz update