Chevron will join Talos Energy and Carbonvert in developing the Bayou Bend CCS offshore carbon capture and sequestration project in the Gulf of Mexico off the coast of Jefferson County, Texas.
Talos and Carbonvert, through the Bayou Bend CCS joint venture, were winning bidders for the Texas General Land Office’s 2021 carbon storage lease, located in state waters offshore Beaumont and Port Arthur.
The three entities have signed a memorandum of understanding to expand the joint venture.
The Bayou Bend CCS project site encompasses over 40,000 gross acres and could potentially hold 225 to 275 million metric tons of carbon dioxide (CO2) captured from industrial sources in the area.
The Bayou Bend CCS lease is the first and only offshore lease in the U.S. dedicated to CO2 sequestration.
Under the terms of the MOU, Talos and Carbonvert would expand the joint venture to include Chevron in exchange for cash at closing and capital cost carrying through the project’s final investment decision. Upon closing of the joint venture, equity interests in the joint venture would be 25 percent Talos, 25 percent Carbonvert and 50 percent Chevron. Talos would remain the operator.
“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. We believe the addition of Chevron greatly enhances the execution of this hub-scale project and we hope this sends a clear signal to industrial partners in the Beaumont and Port Arthur region that we are focused on making Bayou Bend the premier CCS project in southeast Texas.”
“Since our establishment of Chevron New Energies, we have been consistent in our communication that partnerships will be required to grow successful lower carbon businesses. 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. “Talos and Carbonvert have worked to rapidly advance this project, and as a priority project for Chevron in a key industrial area, we are excited to contribute our experience and capability to develop the leading offshore carbon sequestration hub for the region.”