Spanish major Repsol has signed an agreement with Carbon-Zero, an affiliate of privately-owned Cox Oil, to develop carbon capture and sequestration (CCS) projects on the US Gulf Coast.
Carbon-Zero will capture, transport, and store the carbon dioxide in underground reservoirs from industrial emitters, who the company is currently soliciting to join its efforts.
Cox Oil’s existing operations in the shallow waters offshore of Louisiana make it the optimal initial location of the partnership.
"Our goal is to enhance our communities with energy supplied with the lowest carbon footprint possible,” chief executive of Carbon-Zero, Ken Jackson, said.
“This consortium allows us to expand our commitment to remove emissions from critical infrastructure in our community."
Repsol will contribute its technical knowledge and global experience with CCS projects, including from a scheme in Indonesia that plans to capture up to 2 million tonnes of carbon dioxide per year. The agreement aligns with Repsol's ambitions to reduce carbon dioxide emissions intensity in its upstream business by 75% in the 2021 to 2025 period.
"Repsol is proud to be a global leader in the development of innovative technology to drive the energy transition, including projects like CCS aimed at reducing emissions across multiple sectors and industries,” said Tomas Zapata, Repsol's Exploration Americas director.
“We look forward to bringing our international experience and knowledge to the consortium to advance our shared sustainability objectives in the United States, which is a core region for Repsol."