Denbury’s Carbon Solutions Business Enters First CCUS Deal with Mitsubishi
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Denbury’s wholly-owned subsidiary, Denbury Carbon Solutions and Mitsubishi Corporation have executed a term sheet for the transport and storage of CO2 captured from Mitsubishi’s proposed ammonia project on the Gulf Coast of the United States.
The agreement between Denbury and Mitsubishi underscores the parties’ shared interest in pursuing energy opportunities and contributing towards a low-carbon society, with Mitsubishi focused on the production of fuel ammonia and Denbury pursuing its mission of providing world-leading carbon transportation and storage solutions.
Mitsubishi aims to introduce its fuel ammonia to the Japanese market, with production commencing from its Gulf Coast facility in the latter half of the decade. The project is targeted to produce an ammonia volume of around 1 million metric tons per annum (mmtpa) with associated CO2 emissions of around 1.8 mmtpa and the potential for additional ammonia projects to follow.
“Today’s announcement with Mitsubishi highlights Denbury’s position as the preferred business partner for transporting and storing captured industrial CO2 emissions. We are excited to deliver the first of what we believe will be many CO2 transport and storage deals with industrial customers along our extensive infrastructure footprint,” said Chris Kendall, Denbury’s president and chief executive officer.
We look forward to working with Mitsubishi on this project, which represents a significant step in the creation of substantial value through our Carbon Solutions business,” added Kendall.
Key highlights of Denbury’s term sheet with Mitsubishi include:
• Denbury will transport and sequester all of the CO2 captured at Mitsubishi’s ammonia facilities.
• The captured CO2 may be utilized by Denbury in its enhanced oil recovery operations or, alternatively, for
storage in other geologic sequestrations sites.
• The term sheet contemplates an initial period of 20 years, with the ability to extend further. Total volumes under
the arrangement could surpass 50 million metric tons of CO2.
• Mitsubishi’s ammonia facilities are planned for construction in close proximity to Denbury’s CO2 Green Pipeline
system.
About Denbury
Denbury is an independent oil and natural gas company with operations focused in two key operating areas: the Gulf Coast and Rocky Mountain regions. The company’s goal is to increase the value of its properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to CO2 enhanced oil recovery operations.
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