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Texas Emerges as a Hub for Carbon Capture and Storage

Texas, a state historically reliant on fossil fuels, is rapidly positioning itself as a leader in Carbon Capture, Utilization, and Storage (CCUS) technologies. This shift is driven by a combination of factors, including the state's vast geological formations suitable for carbon sequestration and its well-established energy infrastructure.


A Growing Network of CCUS Projects

1PointFive (a subsidiary of Occidental Petroleum) and Enterprise Products Partners have recently announced plans to develop a CO2 transportation network to support 1PointFive's Bluebonnet Sequestration Hub in southeast Texas. This network will transport CO2 emissions captured by third-party facilities near the Houston Ship Channel to the sequestration hub. The new pipeline will be built alongside Enterprise's existing infrastructure. The hub will be capable of storing more than 1 billion metric tons of CO2.


Denbury's Green pipeline, a 314-mile pipeline, currently transports CO2 from industrial emitters in Louisiana and Texas for enhanced oil recovery operations. This existing infrastructure can serve as a foundation for future CCUS projects in the region.


Also earlier this month, 1PointFive received a combined $36 million in funding from the U.S. Department of Energy (DOE) as part of Phase III of the Carbon Storage Assurance Facility Enterprise (CarbonSAFE) Initiative for its Bluebonnet and Magnolia Sequestration Hubs. This funding will support 1PointFive's efforts in site characterization, permitting, and environmental approvals for the construction of both hubs.


The Potential of CCUS in Texas

While most CCUS projects in Texas are currently in the planning or engineering phases, the state's commitment to reducing greenhouse gas emissions and its supportive regulatory environment have accelerated the development of these technologies.

Bayou Bend is a significant carbon capture and storage (CCS) project situated along the Texas Gulf Coast. It's a collaborative effort between Chevron, TotalEnergies, and Equinor, with Chevron leading the project. This CCS solution is designed to capture and store CO2 emissions from industrial facilities in the Houston Ship Channel and Beaumont-Port Arthur regions, one of the largest industrial corridors in the U.S. The project encompasses both onshore and offshore storage licenses, spanning approximately 600 square kilometers, with the potential to store hundreds of millions of tons of CO2.


Initially developed by Talos Energy and Howard Energy Partners, Coastal Bend CCS is now owned 50% by TotalEnergies following the acquisition of Talos Low Carbon Solutions early 2023. This acquisition granted TotalEnergies ownership stakes in multiple CCS projects, including 25% of Bayou Bend and 65% of Harvest Bend in Louisiana.


Texas is home to several key industries that are significant contributors to CO2 emissions. Power plants, in particular, remain the largest source of these emissions. Additionally, the petroleum and natural gas industry, due to its energy-intensive processes, and the chemical industry, especially in chemical and material production, are substantial contributors to Texas's carbon footprint.

By targeting these sectors, CCUS can play a crucial role in reducing Texas's carbon footprint and mitigating climate change.

As CCUS technology continues to mature and become more cost-effective, Texas is well-positioned to become a global hub for carbon capture and storage.


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