London, 8 June 2021 – Storegga, an independent UK company pioneering carbon reduction and removal for a net zero world, is pleased to announce that it has formed an exclusive joint venture (“JV”) with Talos Energy Inc. (“Talos”), an independent offshore energy company focused on oil and gas exploration and production in the United States Gulf of Mexico and offshore Mexico: collectively, the “Partners” to source, evaluate and develop carbon capture, and storage (“CCS”) project opportunities on the United States Gulf Coast and Gulf of Mexico (“GOM”), including state and federal waters offshore Texas, Louisiana, Mississippi and Alabama. The Partners are actively exploring opportunities with counterparties along the CCS value chain.
Under the joint venture framework, the Partners, in collaboration, will originate and mature CCS ventures with emitters, infrastructure providers, service companies and financing partners, among others. The JV combines Storegga’s leading end-to-end CCS project experience and Talos’s offshore operational and sub-surface expertise. Under the terms of the agreement, as individual CCS projects are matured in the future, each will be ring-fenced with separate operating agreements, financing structures and the possibility of additional working interest partners. The agreement requires zero up front capital commitments and the Partnership will share costs 50/50 in the initial phases. Talos is designated as the operating partner of the JV.
Through its wholly owned subsidiary Pale Blue Dot Energy, Storegga is the lead developer of the Acorn CCS Project and the Acorn Hydrogen Project in North East Scotland. Acorn is one of the most mature UK CCS and hydrogen projects and is positioned to be the most cost-effective and scalable CCS project in the UK. Additionally, the Company has partnered with Carbon Engineering, a Canadian-based clean energy company, to develop and build a large-scale direct air capture (“DAC”) plant in the UK within the next five years.
As one of the leading independent operators in the Gulf Coast and GOM, Talos’s core skill set naturally complements CCS project requirements, particularly with respect to CO2 injection and storage, including geology and geophysics, reservoir engineering, drilling and completion operational excellence, regulatory processes and inland water and offshore logistics.
The United States Gulf Coast is a prime location for offshore carbon capture projects in the U.S. The area contains some of the nation’s highest concentrations of power generation, industrial and petrochemical facilities, including 100+ facilities emitting more than 1,000,000 tonnes of CO2 emissions per year. In addition to the large industrial multi-national companies and conglomerates present in the region, there is also a high density of smaller private and “middle-market” industrial sites which may require CCS solutions in the future. This critical industrial network is immediately adjacent to a large natural carbon storage province located offshore in shallow waters in the Gulf of Mexico Shelf and potentially holding over 30 gigatons of available storage in geological structures with the necessary rock properties and fluid type to effectively store significant CO2 volumes. With its long history as a prolific energy producing region, the Gulf of Mexico also offers vast infrastructure and service networks as well as a capable labour force. These essential technical and commercial elements can supply the growing demand for large-scale CCS emissions solutions in one of the biggest industrial regions in the world.
Storegga Chief Executive Officer, Nick Cooper, commented: “The rapid deployment of CCS and carbon management value chains requires appropriate geological storage for carbon sequestration, access to emitters and existing infrastructure, and partnerships with experienced, like-minded organisations that share the desire to make this happen. The US Gulf Coast offers significant potential for CCS and we are delighted to be partnering with Talos, a leading offshore operator. The joint venture demonstrates the international opportunities for Storegga as an independent developer of CCS infrastructure. We hope that it will be the first of many.”
Talos President and Chief Executive Officer, Timothy S. Duncan, commented: “We’re excited to announce this joint venture with Storegga and thrilled to partner with their team as they expand into the United States. Engaging in CCS projects along the Gulf Coast and shallow water Gulf of Mexico compliments our operating skill set and diversifies the Company to seize this significant market opportunity. We have a responsibility to deliver affordable, reliable energy with the lowest carbon footprint possible, and this joint venture allows us to expand our impact beyond our own assets to provide solutions for removing emissions from critical industrial sectors in our backyard. We are actively working on a host of ideas and are proud to be an exclusive operating partner with a recognized leader in the rapidly-evolving CCS space.”
For further information please contact:
|Camarco (PR and Media)
Billy Clegg, Monique Perks, Tom Huddart
|020 3757 4983|
|Madano (Public Affairs)
Andrew Turner, Neil Stockley, James Watson
Notes to Editors:
Storegga is an independent carbon management business at the forefront of the global Net Zero strategy. Through its wholly owned subsidiary, Pale Blue Dot, Storegga is the lead developer of the Acorn Carbon Capture and Storage (“CCS”) and Hydrogen project, providing essential infrastructure to help the UK meet its net zero targets.
Storegga has partnered with leading engineering and technology groups at the forefront of their fields to accelerate project activity. The Company has partnered with Carbon Engineering to develop Direct Air Capture (“DAC”) in the UK.
Storegga Geotechnologies: (https://www.storegga.earth/)
For more information on the Acorn CCS and Hydrogen Project, please visit: About Acorn – Acorn CCS (theacornproject.uk)
Talos Energy (NYSE: TALO) is a technically driven diversified energy company focused on safely and responsibly maximizing long-term value through our operations in the United States and offshore Mexico, both upstream through oil and gas exploration and production and downstream through the development of future carbon capture and storage opportunities. As one of the Gulf of Mexico’s largest public independent producers, we leverage decades of technical and offshore operational expertise towards the acquisition, exploration and development of upstream energy assets in key geological trends. With a focus on environmental stewardship, we are also utilizing our expertise to reduce industrial emissions through our carbon capture and storage joint venture along the U.S. Gulf Coast and Gulf of Mexico. For more information, visit www.talosenergy.com.
Sergio Maiworm – Investor Relations