Talos Energy has teamed up with UK-based clean energy player Storegga Geotechnologies to scout for carbon capture and storage (CCS) opportunities in the US.
Houston, Texas-based independent Talos said on Tuesday that the pair have formed a joint venture “to source, evaluate and develop” such project opportunities on the US Gulf Coast and Talos’ core operating patch of the Gulf of Mexico.
“The partners are actively exploring opportunities with counterparties along the CCS value chain,” Talos added, without elaborating.
The areas under consideration include state and federal waters offshore Texas, Louisiana, Mississippi and Alabama.
Project 'ring fence'
Talos said the pair will “originate and mature CCS ventures with emitters, infrastructure providers, service companies and financing partners, among others”.
It added that, as individual projects are matured, “each will be ring-fenced with separate operating agreements, financing structures and the possibility of additional working interest partners”.
There are no up-front capital commitments involved, but the partners will share costs in the initial phases on a 50:50 basis, with Talos designated as the operating partner of the venture.
Talos termed the US Gulf Coast a “prime location” for CCS projects.
It added that the area contains some of the highest concentrations of power generation, industrial and petrochemical facilities in the US, including 100-plus facilities emitting more than 1000,000 tonnes per annum of carbon dioxide.
“In addition to the large industrial multi-national companies and conglomerates present in the region, there is also a high density of smaller private and ‘middle-market’ industrial sites which may require CCS solutions in the future,” it said.
The company added that the Gulf of Mexico also “offers vast infrastructure and service networks as well as a capable labor force” due to its maturity as an oil and gas-producing basin.
Talos chief executive Tim Duncan said: “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.”
Storegga chief executive Nick Cooper added: "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 organisations that share the desire to make this happen.
“The US Gulf Coast offers significant potential for CCS.”