The company has acquired a 25% stake in the Bayou Bend CCS project from Carbonvert, establishing itself as a project partner alongside Chevron (operator, 50%) and Talos Energy (25%). The move marks Equinor’s entry into the CCS landscape on the US’s Gulf Coast, and builds on its existing blue hydrogen + CCS hub planned in the tri-state area, in partnership with Shell and US Steel.
Initially developed by Talos Energy and Carbonvert, the consortium brought on Chevron as a partner in May’22 through the sale of a 50% stake for a cash consideration of $50mn. In Mar’23, the partnership expanded the project’s footprint by an additional 100,000 acres, raising the pore space available for permanent sequestration to 140,000 acres. The total acreage holds estimated gross potential storage resources of more than 1 billion metric tons, positioning Bayou Bend to be a leading CCS solution for industrial emitters located in the Houston Ship Channel and Beaumont / Port Arthur region, one of the largest industrial corridors in the country.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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