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    1. Energy Efficiency

    Chevron, partners expanding development plans for Offshore Carbon Capture project

    May 4, 2022
    The offshore CCUS venture was approved by the state of Texas in a lease awarded last year. It spans more than 40,000 gross acres and is expected to sequester 225 to 275 million metric tons of CO2 from industrial sources.
    Image credit Talos Energy
    Bayou Bend Ccus 62728b59c9c69

    The Chevron New Energies division, Talos Low Carbon Solutions and Carbonvert have signed a memorandum of understanding to expand their joint venture to develop the Bayou Bend CCS offshore carbon capture and sequestration hub.

    The Bayou Bend CCS project is currently held by Talos and Carbonvert and is the first and only offshore lease for CO2 sequestration, the companies say. It spans more than 40,000 gross acres and is expected to sequester 225 to 275 million metric tons of CO2 from industrial sources.

    Talos and Carbonvert will contribute the Bayou Bend CCS lease to the joint venture. In exchange, the firms will receive cash at closing and capital cost carry through project FID.

    Talos and Carbonvert will hold an interest of 25% each in the joint venture and 50% will be held by Chevron. Talos will remain the operator.

    “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 (CCUS) for Chevron New Energies.

    In 2021, a joint venture between Talos and Carbonvert was the winning bidder for the Texas General Land Office’s (“GLO”) Jefferson County, Texas, carbon storage lease, located in state waters offshore Beaumont and Port Arthur, Texas.

    Talos President and CEO Timothy Duncan added, “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.”

    About the Author

    EnergyTech Staff

    Rod Walton is senior editor for EnergyTech.com. He has spent 14 years covering the energy industry as a newspaper and trade journalist.

    Walton formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    He can be reached at [email protected]. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids.

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.