US independent Talos Energy and partner are the winning bidders in a planned carbon capture and storage (CCS) project on the Texas Gulf Coast.
The winning bid was selected by the Texas School Land Board from 12 submissions for the Texas General Land Office (GLO) CCS project located offshore in Texas state waters, situated near Beaumont and Port Arthur.
The project is expected to sequester between 225 and 275 million tonnes of carbon dioxide.
Operator Talos said the project area is 100% covered by the company’s existing seismic database.
The winning bid was submitted in partnership with Carbonvert, a CCS-focused project management and finance company established in late 2020.
“This is an exciting announcement for Talos and Carbonvert as we advance our carbon capture initiative from concept towards our first tangible project site,” Talos president and chief executive officer Timothy Duncan said.
“With this award, we are positioned to become among the first independent US energy companies with an identified site dedicated to carbon sequestration, further advancing our leadership among peers in this rapidly-developing space.”
At the Offshore Technology Conference, Duncan said Talos’ experience in the Gulf of Mexico makes it a prime contender for CCS projects, which he said have potential along the coasts of Louisiana and Texas.
Duncan encouraged other companies to invest in CCS projects, supporting this in Wednesday’s release.
“We want to re-define the role of traditional oil and gas companies, as we recognise the need to responsibly develop and produce hydrocarbons as well as lowering overall emissions in the communities where we work and live,” Duncan said.
The next step is for Talos and Carbonvert to negotiate an exclusive lease agreement with GLO staff, pending approval from the Texas School Land Board.
After the bid was submitted, Talos announced a partnership with UK-based clean energy player Storegga Geotechnologies to explore CCS opportunities in the US Gulf Coast.