JEFFERSON COUNTY, Texas — Three energy companies are planning on partnering to help decarbonize industrial areas in Jefferson County, according to a Chevron news release.
On Tuesday, energy companies Chevron, Talos, and Carbonvert announced a memorandum of understanding. The MOU was proposed for an expanded joint venture between the three companies to develop the Bayou Bend CCS offshore carbon capture and sequestration hub, according to the release.
Carbon capture and sequestration technology helps to safely isolate and store large amounts of carbon dioxide each year that would be released into the earth's atmosphere. Carbon dioxide is a byproduct of industrial activity and power generation, according to the GLO.
The Bayou Bend CCS is the first and only offshore lease in the U.S. dedicated to carbon dioxide sequestration, the release says. The carbon storage lease is located in waters offshore in Beaumont and Port Arthur.
"This venture is an example of the potential that partnering can have in moving large-scale lower-carbon projects forward,” said Chris Powers, vice president of Carbon Capture, Utilization, and Storage for Chevron New Energies.
The Bayou Bend CCS project site has more than 40,000 gross acres, the release says. It could potentially sequester 225 to 275 million metric tons of carbon dioxide from industrial sources in the Gulf Coast area, according to preliminary estimates from Talos and Carbonvert.
“Chevron brings significant expertise and experience to this project, and we are excited about what this partnership can deliver,” said Timothy S. Duncan, president, and CEO of Talos. “We share a collective interest and commitment to developing low carbon solutions, and the success of these solutions will depend greatly on collaborative partnerships throughout the value chain."
The proposed joint venture is pending a final decision, closing agreements, and regulatory approval, according to the news release.
If the three companies close the deal, Talos would remain the operator with a 25% stake, Carbonvert will have 25%, and Chevron will have 50% in the joint venture.
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This is a developing story. We will update with more if and when we receive more confirmed information.