BECCS takes flight in the Gulf Coast

Development Activity

• CarbonVert, Enbridge, Castex Joint Venture OnStream CO2 permitted a Class V will in Saint Charles Parish near Hahnville.

CO280 Signs Landmark 3.69 Million Tonne Agreement with Microsoft

• CO280 propels themselves as the leader in mega-scale Carbon Dioxide Removal projects. CO280 signs a first-of-kind U.S. project totaling 3.69 million tonne agreement over 12 years with Microsoft for offtake from a Pulp and Paper mill.

• SLB's SLB Capturi carbon capture technology will be implemented for the project - coming off continued success in BECCS projects in Europe.

• There are ample pulp and paper facilities along the Gulf Coast that's suitable for carbon storage. Unlocking the CDR market will be the catalyst for further projects.

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1PointFive Signs 25-Year Sequestration Agreement for CF Industries

• Is there a new contender for carbon transportation and sequestration to ExxonMobil? Oxy’s 1PointFive signs a landmark 2.3 million metric ton per year offtake agreement with CF Industries. The offtake signifies that there are alternative decarbonize options in the Gulf Coast.

• The blue hydrogen project partners now include CF Industries, JERA, and Mitsui that will compete against the other Gulf Coast ammonia projects for Japanese offtake.

• CF Industries now leads the low carbon ammonia industry in the U.S. with 2 signed agreements from ExxonMobil and now this with Oxy

• The CO2 will be captured from CF Industries’ Bluepoint facility in Ascension Parish and then transported and sequestered in Oxy’s Pelican Sequestration Hub.

  

Louisiana grants Sempra’s Hackberry Sequestration Class VI well permit

• Louisiana has approved its first Class VI injection well permit since receiving State Primacy, authorizing Sempra’s Hackberry Sequestration project in Cameron Parish.

• Sempra initially submitted the permit application to the U.S. Environmental Protection Agency (EPA) in September 2021. The approval marks the culmination of a permitting process that spanned approximately three and a half years—timelines that are expected to improve as the Louisiana Department of Natural Resources (LDNR) further refines its permitting procedures.

• The Hackberry Sequestration asset is designed as a single-well development, permitted to inject up to 2 million metric tons of CO₂ per year over a 20-year period. The captured CO₂ will come from natural gas processing operations at Sempra’s Cameron LNG facility.

• As nations prioritize energy security in their national policies, low-carbon natural gas is playing an increasingly central role in global decarbonization and procurement strategies—regardless of the accelerating demand for natural gas from data centers. In this evolving landscape, timely permitting and access to high-quality pore space will be key differentiators for LNG producers along the Gulf Coast.

  

UK Completes First CO2 Injection Test For Carbon Capture and Storage

•  CO₂ was injected into the depleted Leman natural gas reservoir in the UK Southern North Sea. This test represents a crucial step in the UK's decarbonization efforts, potentially playing a key role in achieving net-zero objectives by decarbonizing industrial emitters.

• The Poseidon CCS project is a collaboration among Perenco, Carbon Catalyst, and Harbour Energy

• The Leman field, part of the project, is the UK's largest reservoir complex, with an estimated storage capacity of around 1,000 million tonnes of CO₂

• This initiative aligns with the UK government's commitment of approximately £22 billion for CCS, including funding for projects like HyNet and Northern Endurance Partnership East Coast Cluster

News Bites

• Foreign Pollution Fee Act of 2025—could dramatically shift global trade dynamics. Introduced in the Senate, the legislation would impose fees on imported goods based on their pollution intensity relative to U.S. manufacturing standards.

• Allen Parish police jurors are considering a measure to ban carbon capture and sequestration (CCS) projects near schools. The proposal is to reconsider an ordinance that would prohibit the drilling of CO2 wells within a two-mile radius of any school.

• UK greenlights $250M Viking Carbon Capture pipeline project. The dense -phase CO2 pipeline will be 34 miles from Immingham to the Theddlethorpe Gas Terminal. From there, the CO2 will be transferred offshore for long-term storage in the Viking gas fields located beneath the North Sea.

• Danish Government awards Norne Thorning Storage the License to explore the possibility of CO2 storage in Jutland