CCS Opportunity Along the Gulf Coast Corridor

Carbon capture and storage (CCS) activity along the Gulf Coast from Corpus Christi to the Mississippi River and in state waters of the Gulf of Mexico is increasing. ExxonMobil, Chevron, Talos, Denbury, Occidental, Repsol and many other companies are forming partnerships to take advantage of evolving business opportunities or government co-funding of CarbonSAFE projects. The Gulf Coast corridor, onshore and offshore, from Corpus Christ to the Mississippi River presents a high concentration of CO2 from industrial sources and excellent storage reservoirs in the underlying Cretaceous and Tertiary sands. Analysis of the technical, geologic, economic and social aspects of this CCS opportunity is necessary for successful deployment of CCS technology and eventual attainment of NetZero goals. To provide analysis of the CCS opportunity along the Gulf Coast Corridor, the National Energy Technology Laboratory (NETL) has developed a CO2 Transport Cost Model and an Onshore CO2 Storage Cost Model. Nearing completion is the Offshore CO2 Saline Storage Cost Model. These models can provide comparative analysis of storage and transport opportunities for multiple CO2 sources to storage locations onshore, offshore or between either. The Onshore CO2 Storage Cost Model is aligned with EPA’s Class VI regulations which are also applicable in offshore State waters. Carbon dioxide storage regulations for offshore operations in Federal waters are being developed, built upon existing offshore oil & gas operations but are expected to dovetail with onshore Class VI regulations to minimize any conflicting requirements. Financing CCS project development and operations is a primary challenge that is evolving towards a solution. A key component here is the 45Q credit, which in turn will support offtake agreements between a source and storage operations. Initial industry interest in the Gulf Coast region presents an opportunity to examine business opportunities for deployment of CCS technology in this area, either onshore, offshore of both.