Talos, Storegga form Gulf Coast region CCS joint venture

Offshore staff

HOUSTON – Talos Energy and Storegga Geotechnologies have agreed to jointly assess and develop carbon capture and storage (CCS) project opportunities on the US Gulf Coast and in the Gulf of Mexico.

Locations could include state and federal waters offshore Texas, Louisiana, Mississippi, and Alabama. And the two companies will also investigate co-operations with others across the CCS value chain.

Under the joint venture framework, they plan to originate and mature CCS ventures with emitters, infrastructure providers, service companies and financing partners, combining Talos’ offshore operations and sub-surface experience with Storegga’s CCS project experience.

As individual CCS projects are matured, each will be designated with separate operating agreements, financing structures and the possibility of bringing in additional partners.

The two companies will share costs 50/50 in the initial phases, with Talos acting as operating partner of the joint venture.

Storegga is a lead developer of the Acorn CCS and Acorn Hydrogen projects in northeast England, with the CCS project set for a final investment decision in 2022.

Talos sees its core skill set complementing CCS project needs, notably in terms of CO₂ injection and storage, including geology and geophysics, reservoir engineering, drilling and completion, regulatory processes and inland water and offshore logistics.

The US Gulf Coast area houses some of the US’ major power generation, industrial and petrochemical facilities, and according to Talos, more than 100 of these emit more than 1 MM t/yr of CO₂.

In addition, there is a large number of smaller private and ‘middle-market’ industrial sites that may seek CCS solutions in the future. According to Talos, the location is adjacent to a large natural carbon storage province in shallow waters in the GoM shelf that potentially offers more than 30 gigatons of storage capacity in geological structures with the rock properties and fluid type required to store significant CO₂ volumes.

Further, the region offers substantial infrastructure and service networks and supporting workforce to supply growing demand for large-scale CCS emissions solutions, Talos claimed.

06/08/2021