Sep 20, 2023   SOURCE: BusinessWire

Carbonvert, Castex Joint Venture Executes Operating Agreement for Offshore Carbon Storage Hub in Louisiana

Carbonvert Inc. (“Carbonvert”) and Castex Energy, Inc., through its wholly owned subsidiary, Castex Carbon Solutions, LLC (“Castex”, together with Carbonvert, the “JV Partners”) are pleased to publicly announce the execution of an operating agreement with the State of Louisiana to develop a 24,000 acre tract of land situated in State waters, offshore Cameron Parish, to permanently store carbon dioxide (“CO2”). Castex’s decades-long operational, commercial and subsurface experience, combined with Carbonvert's specialized expertise in carbon capture and storage (“CCS”), position the Cameron Parish CO2 Hub as a leading choice for regional emitters seeking efficient and sustainable decarbonization solutions.

Based on technical and subsurface studies by Castex and the region's advantageous subsurface geology, the Cameron Parish CO2 Hub has a total storage capacity of more than 250 million metric tons of CO2 and will service the region’s high concentration of existing industrial emitters and anticipated greenfield projects, notably ammonia and LNG facilities. The JV Partners are also actively exploring opportunities to repurpose existing pipeline infrastructure to support the project.

In August 2022, the JV Partners executed a 50/50 joint venture agreement to jointly identify and advance CCS projects in Louisiana. Acting as good stewards of all operated lands, while developing a globally competitive CCS hub, the JV Partners aim to bring both economic and environmental benefits to Cameron and Calcasieu Parishes and the broader surrounding region. Castex will serve as the operator for the Cameron Parish CO2 hub.

Carbonvert CEO, Alex Tiller, shared, "We firmly believe our Cameron Parish offshore project will help shape Louisiana’s low carbon future. Our CCS project will strengthen the local economy via funds from the newly adopted Louisiana Act No. 378, via the Federal Justice40 requirements, and by attracting new low-carbon focused businesses and related jobs. It will also provide a solution to clean up existing regional CO2 emissions, which is a win for everyone.”

Castex EVP & CFO Aaron Killian commented: “Castex and Carbonvert look forward to developing the first offshore CO2 storage hub in Louisiana. Our Cameron Parish project combines premier geologic storage attributes with existing midstream infrastructure to provide a range of tailored solutions to the adjacent industrial corridors in need of economically viable CO2 storage. The significant environmental benefit and local economic impact of this project align with the mission and vision of the JV Partners and the industries we are collaborating with to address regional CO2 emissions.”

Upholding their joint commitment to safety and tangible community benefits, the JV Partners remain dedicated to advancing Louisiana's sustainable future through responsible and innovative business practices.

ABOUT CARBONVERT

Carbonvert Inc. is a carbon capture and storage project development and finance company that simplifies decarbonization for industrial facilities. Carbonvert was established in 2020 by veterans of the renewable and conventional energy sectors to manage the financial and technical complexities of CCS project development. Our executives have decades of combined experience developing large-scale projects, financing tax advantaged projects, and structuring over $4 billion in infrastructure investments, including equity, tax equity, and debt. Our leadership team also has deep technical experience with large-scale CO2 projects; have designed and secured environmental and CO2 storage permits; and completed and operated large-scale carbon capture, transportation, and storage projects. Our team’s experience includes Bayou Bend CCS in Chambers and Jefferson County, Texas, Quest CCS in Alberta, Canada, and In Salah in Algeria. For more information, visit www.carbonvert.com

ABOUT CASTEX

Castex has been one of the most active operators, mineral buyers, and landowners in South Louisiana and along the Texas Gulf Coast for over 35 years. We have advanced a unique business model to capitalize on the attractive and complementary opportunity set across the energy value chain, while maintaining our regional focus. We are leveraging our extensive technical expertise and decades of local knowledge to advance the development of multiple large scale CO2 storage hubs in Louisiana that will serve to abate highly concentrated industrial CO2 emissions. Castex has been actively engaged in environmental stewardship since our establishment in 1987. We have consistently prioritized the protection and preservation of the environment in which we operate through stringent adherence to environmental regulations, implementation of cutting-edge technology, and fostering a culture of sustainability. We recognize the importance of safeguarding the natural resources and ecosystems surrounding our operations, and we remain dedicated to upholding our environmental stewardship.