CapturePoint and affiliate CapturePoint Solutions have signed a revised Letter of Intent (LOI) with an affiliate of Energy Transfer, headquartered in Dallas, Texas, for the joint development of a carbon capture and permanent deep underground storage project in Louisiana.
The companies also signed a definitive CO2 offtake agreement committing CO2 from Energy Transfer’s Haynesville natural gas treating facilities.
The revised LOI and accompanying CO2 offtake agreement dedicate CO2 expected to be emitted from Energy Transfer’s Haynesville natural gas midstream facilities to CapturePoint’s Central Louisiana regional carbon storage hub (CENLA Hub) and allows Energy Transfer to participate in a joint venture to own and operate the CENLA Hub.
The CENLA hub is a large onshore, deep underground carbon storage center. Once development is completed, it will have the capacity to permanently store millions of tons of CO2 annually that would otherwise be released into the atmosphere.
“The revised LOI and the CO2 Offtake Agreement reflect Energy Transfer’s recognition of the CENLA Hub as one of the most promising deep underground CO2 storage sites in the nation. We are excited to have this significant commitment from Energy Transfer," said Tracy Evans, CEO of CapturePoint.
The LOI also provides a framework for CapturePoint and Energy Transfer to collaborate for capturing and sequestrating additional CO2 from other Energy Transfer facilities in Louisiana. The agreements provide the foundation for capturing and storing up to 2 million tons of CO2 annually at the CENLA Hub.
The Louisiana Department of Natural Resources is reviewing CapturePoint’s permit applications for CENLA Hub Class VI CO2 injection sites in Vernon and Rapides Parishes.
