Carbon Sequestration: Investments Are Booming

NORTHAMPTON, MA / ACCESSWIRE / May 13, 2024 / Regions Bank

Regions Natural Resources and Real Estate group is helping clients identify an opportunity in carbon capture utilization and sequestration.

By Dana Obrist

In recognition of Earth Day, Regions is sharing a series of articles that highlight how teams and associates across the bank are contributing to our commitment to operate in environmentally sound ways that make life better for all.

We've all heard that carbon dioxide (or CO₂) in the environment is cited as a contributing factor to climate change - a topic that has been making headlines around the world for decades.

A lesser-known topic is one of the solutions positioned to reduce the effects of climate change and provide opportunity for large landowners: carbon sequestration.

What is Carbon Sequestration?

Carbon sequestration is the process of capture, removal and storage of carbon dioxide from the earth's atmosphere. It has been recognized as a key method for removing excess CO₂ from the environment. By capturing carbon at the industrial emission source before it enters the atmosphere, the process often referred to as carbon capture, usage and storage (CCUS) leverages a suite of technologies enabling the mitigation of CO₂ emissions.

Carbon sequestration is yet another way for our clients to put their land to work for them by creating an additional revenue stream with possibly less impact to the surface of their land than more traditional oil and gas exploration.

Joseph Collier, Regions Natural Resources and Real Estate group mineral manager

Collier has been a mineral manager with Regions for 16 years. He and his team are at the forefront of the bank's work with trust, agency and consulting clients seeking to better understand carbon sequestration and opportunities on their land.

Delivering Industry Knowledge

"As mineral managers, we negotiate oil and gas leases for clients in an effort to achieve top market prices for lease bonus payments and royalty percentages, as well as ensuring that the leases include provisions to protect the client's land and mineral right," said Collier.

Collier and his team leverage their experience in the oil and gas industry by applying the same principals and skillset to negotiating CCUS contracts for clients.

"We based our contracts and the structure of monetary compensation on the same principals used in drafting and negotiating oil and gas contracts," Collier noted.