Houston-based Talos Energy and UK-based low-carbon projects firm Storegga Geotechnologies have established an exclusive joint venture to source, evaluate and develop carbon capture and storage (CCS) project opportunities on the US Gulf Coast and Gulf of Mexico.
Under the joint venture framework, the partners will originate and mature CCS ventures with emitters, infrastructure providers, service companies and financing partners, among others.
According to Talos, the agreement requires zero upfront capital commitments, and the partnership will share costs 50/50 in the initial phases. Talos is designated as the operating partner of the joint venture.
Talos president and CEO, Timothy S. Duncan, commented: “Engaging in CCS projects along the Gulf Coast and shallow water Gulf of Mexico compliments our operating skill set and diversifies the company to seize this significant market opportunity.”
Storegga CEO, Nick Cooper, said: “The rapid deployment of CCS and carbon management value chains requires appropriate geological storage for carbon sequestration, access to emitters and existing infrastructure, and partnerships with experienced, like-minded organizations that share the desire to make this happen.”
The US Gulf Coast area contains some of the nation’s highest concentrations of power generation, industrial and petrochemical facilities, including over 100 facilities emitting more than 1m tons of CO2 emissions per year.
Storegga is the lead developer of the Acorn CCS and Acorn hydrogen projects in the UK. The Acorn project is the most advanced large-scale CCS project in the UK with a final investment decision expected in 2022.