Denbury and Weyerhaeuser Announce Agreement for CO2 Sequestration Site in Mississippi
Denbury Inc. (NYSE: DEN) (“Denbury”) and Weyerhaeuser Company (NYSE: WY) (“Weyerhaeuser”) today announced an agreement for the evaluation and potential development of a CO2 sequestration site in Mississippi. The lease agreement provides Denbury with the exclusive right to develop and operate approximately 16,000 acres of subsurface pore space owned by Weyerhaeuser in Simpson and Copiah Counties in Mississippi. The site is located directly adjacent to Denbury’s NEJD Pipeline in Mississippi, approximately 35 miles south of the company’s Jackson Dome field. Denbury is planning to utilize the site to permanently sequester industrial CO2 in secure underground geologic formations. Weyerhaeuser will continue to manage the timberland acreage as a sustainable working forest.
Denbury estimates the site will have total sequestration capacity of approximately 275 million metric tons of CO2. The site represents Denbury’s first planned CO2 sequestration location in Mississippi, expanding its storage portfolio that already includes sites along the U.S. Gulf Coast in Alabama, Louisiana, and Texas. Denbury intends to drill a stratigraphic test well on the site in 2023 to support the Company’s geologic interpretation and progress Class VI permitting with the EPA.
Nik Wood, Denbury’s Senior Vice President, CCUS, commented, “Our agreement with Weyerhaeuser is a significant step in building out the Gulf Coast’s leading CO2 transportation and sequestration network. The location of this Mississippi site, directly adjacent to our existing pipeline network, provides for a very efficient development and increases the overall flexibility and capacity of our operations. We now have the pathways to move industrial-sourced CO2 from the Mississippi River Industrial corridor north on our NEJD pipeline, west on our Green Pipeline, and east to our previously announced planned storage in southeast Louisiana. We look forward to working with Weyerhaeuser as we develop the safest, most reliable and efficient CO2 transportation and storage system in the Gulf Coast.”
The lease agreement demonstrates Weyerhaeuser’s continued progress on its previously announced plan to grow its Natural Climate Solutions business, including through carbon capture and sequestration (CCS), forest carbon offsets, renewable energy development, mitigation solutions and conservation. Weyerhaeuser has identified multiple locations for potential sequestration projects across a portion of its 7-million-acre footprint in the U.S. South using proprietary geological data covering its lands.
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