Denbury announced on Tuesday the establishment of a joint venture with Lapis Energy to develop a carbon capture project in Louisiana. The partnership comes in response to the growing global demand for reducing greenhouse gas emissions.
The newly formed entity, named Libra CO2 Storage Solutions, will be equally owned by both companies, with each holding a 50% stake. Carbon sequestration, a process involving the capture and storage of carbon dioxide deep underground, has gained significant momentum in recent years as industries and governments strive to meet their climate objectives.
Lapis Energy will take the lead in navigating the project's permitting process, pre-investment phase, and initial construction. Denbury, on the other hand, will assume the role of operator and oversee subsequent construction management.
The project site is estimated to have the capacity to store at least 200 million metric tons of CO2. Due to its close proximity to industrial hubs, the site has the potential to become a regional hub for decarbonization efforts.
In a separate announcement on Tuesday, Denbury disclosed a collaboration with Soterra, a subsidiary of Greif Inc (GEF.N), a manufacturer of industrial packaging products. The agreement grants Denbury the right to develop a dedicated site for CO2 sequestration in Louisiana.
The concerted efforts of Denbury, Lapis Energy, and their partners reflect a growing commitment among businesses to tackle climate change by implementing sustainable practices. The development of carbon capture projects demonstrates a concerted push towards reducing planet-warming emissions and achieving environmental targets.
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By leveraging carbon sequestration technology and establishing strategic partnerships, companies in the energy sector aim to contribute significantly to the global fight against climate change and pave the way for a more sustainable future.
