Talos Partners with Storegga on Proposed Gulf Coast Carbon Capture Projects
Talos Energy Inc., a publicly-traded fossil fuel company that conducts exploration and production of oil and natural gas in and along the Gulf of Mexico, has entered into a joint venture with UK carbon removal company Storegga Geotechnologies to embark on carbon capture and storage projects along the Gulf Coast.
The areas targeted for the projects include state and federal waters offshore of Texas, Louisiana, Mississippi and Alabama. The agreement struck between the two companies doesn’t involve any upfront capital commitments, and costs will be shared 50/50 during the initial project phases.
Storegga’s subsidiary, Pale Blue Dot Energy, has a flagship project called Acorn, a CCS and hydrogen project in North East Scotland. The CCS aspect uses existing gas pipelines to transport CO2 to a storage site. The hydrogen portion is a plant aimed to be functional in 2025 that will reform natural gas from the North Sea into hydrogen fuel. The CSS infrastructure will remove the CO2 emissions generated from the production of hydrogen.
"The rapid deployment of CCS and carbon management value chains requires appropriate geological storage for carbon sequestration, access to emitters and existing infrastructure, and partnerships with experienced, like-minded organizations that share the desire to make this happen,” Storegga Chief Executive Officer Nick Cooper said.
The Gulf Coast is a prime location for the CCS project due to the region being home to many petrochemical and power generation facilities. The over 100 facilities reportedly emit over one million tons of CO2 emissions annually. The shallow waters of the Gulf have been identified as being able to store over 30 gigatons of CO2 in geological structures.
“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,” Talos President and CEO Timothy S. Duncan said. “We have a responsibility to deliver affordable, reliable energy with the lowest carbon footprint possible, and this joint venture allows us to expand our impact beyond our own assets to provide solutions for removing emissions from critical industrial sectors in our backyard.”
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