Blue Hydrogen gets a boost, GIP builds CCS arm

The Low Carbon Briefing

May 29, 2025

DTE Energy (via Cass Sequestration) submitted a Class VI well application in Indiana. The sequestration asset will decarbonize The Andersons & Marathon Petroleum’s ethanol facility in Logansport, Indiana. The facility is estimated to capture up to 420,000 mt CO2 per year.
- Additionally, DTE Energy has drilled other stratigraphic wells for future Class VI applications including: Shelby (Poet Ethanol), Putnam(Poet Ethanol), and St. Joseph (Poet Ethanol) County in Indiana.
Core Energy submitted their Class VI application in Manistee, Michigan to convert their EOR into geological sequestration
Conestoga Energy completed their Class VI well near its Bonanza BioEnergy ethanol plant in Garden City, Kansas. The well is 14 miles away from their EOR asset and plans to store

Tenaska is quickly developing the largest multi-basin CCS portfolio in the U.S. with assets in Alabama, Texas, Louisiana, Ohio, West Virginia, and Pennsylvania
The Tri-State CCS project encompasses Oak Grove (Pennsylvania), Buckeye (Ohio) and Redbud (West Virginia) to service existing assets and greenfield projects - likely to offer decarbonized power to Data Centers with Svante
Unlike the geology to the Gulf Coast, Tri-State development plans are lower injection rate wells but are planned for longer injection periods of up to 60 years
The development plan will be to inject into multiple zones to increase storage efficiency, reduce overall plume size, and increase years of injection
The wells are also strategically placed along nearby railroad to enable regional sequestration - similar to Sweetwater Hub in Wyoming
In tandem, Ohio House Bill 170 was introduced to establish a framework for State Primacy to follow North Dakota, Louisiana, Wyoming, and West Virginia

ENI has initiated exclusive discussions with Global Infrastructure Partners (GIP) to sell a 49.99% stake in its global CCUS business
The CCS business includes HyNet and Bacton in the UK, L10 in the Netherlands and rights for ENI’s flagship Ravenna project in Italy
Reuters reported that HitecVision, Macquarie, SNAM, and Thailand’s PTT E&P also submitted non-binding proposals
ENI’s CFO stated “The model enables the company to scale its low-emissions operations while continuing to fund its core oil and gas ventures” to provide strategic context of the sale.
As commodity prices continue to be suppressed, it will be interesting to see other Majors low carbon strategies unfold with similar announcements

Arcadia e-Fuels has received final permits for their flagship 80,000 ton per year e-SAF project in Vordingborg, Denmark which clears regulatory hurdles for FID
FEED was concluded in May 2024 with project partners Technip Energies, Hitachi Energy for EPC and electrical components as well as Plug Power for the electrolyzers
Biogenic CO2 will be supplied and transported (by marine) by Blue Water which will deliver 300,000 mt per year of liquid CO2

The Department of Energy revised their GREET model used to calculate carbon intensity and environmental impact to add flexibility for Blue Hydrogen producers
Previously, the GREET model applied a national average to estimate upstream methane emissions which meant the modeled carbon intensity would be higher than actual emissions if a producer used natural gas from a lower emission supply chain that is measured and verified
Enabling producers to quantify the carbon intensity of their hydrogen provides hydrogen offtakers more accurate product attributes (and benefits) in addition to the producer’s higher tax credit
The revised model comes as a surprise as the Senate is currently reviewing the future of 45V

BP and the Northern Endurance Partnership contracts Noble for a 6 well drilling plan
Santos shuts-in Bayu Undan field in Timor-Leste, will it become a regional CO2 storage hub as planned?
Canadian-based Borna plans to invest $40M into Egyptian carbon capture project to tap into country CDR market