US independent Talos Energy and UK-based service provider TechnipFMC announced Monday that they have agreed to a long-term strategic alliance to develop and deliver “technical and commercial solutions” to carbon capture and storage (CCS) projects along the US Gulf Coast.
In a statement, the two companies said their combined expertise in offshore operations, subsea engineering, systems integration and automation and control would make the joint venture competitive.
“Cultivated through a shared vision to responsibly deliver CCS solutions that will help to reduce the global carbon footprint, this innovative partnership will accelerate offshore CCS adoption with reliable, specialised CCS systems,” Talos and TechnipFMC said.
The two companies said they would be capable of handling the full lifecycle of CCS projects, from front-end engineering and design through all field operations.
“We are pleased to partner with Talos to deliver offshore CCS solutions that will help reduce CO2 emissions during the energy transition. This alliance capitalises on our collective expertise and TechnipFMC’s position as a system integrator and architect to deliver a reliable industrial-scale solution for CCS,” said Jonathan Landes, the president of Subsea at TechnipFMC.
Offshore CCS has been a business concept that has been embraced by Talos for some time, and the company was awarded a contract by the Texas General Land Office to build a CCS hub off the Texas Gulf Coast on 25 August. During his speech at this year’s Offshore Technology Conference, chief executive Tim Duncan called the idea “a beacon of opportunity” for US independents.
“We’re looking for a wide-open space of 10,000 feet with rock properties that we're used to drilling that we can create a 40,000 to 50,000-acre store" for carbon dioxide, he said.
“We have an extensive operating footprint in shallow and deep water... There's no reason we should leave this up to the bigger companies to figure out over a longer period of time. This is a place where we can play right now."
Talos’s executive vice president and head of operations Bob Abendshein said the partnership with TechnipFMC would move the company’s vision for CCS forward.
“We are excited to announce this strategic alliance with TechnipFMC and to work collaboratively as we continue to execute on our strategy to scale our CCS business. Combining the technical expertise of both companies solidifies our market leadership in delivering integrated CCS solutions to lower industrial carbon emissions and create a positive impact in the communities where we work and live,” he said.