HOUSTON, Nov. 28, 2023 /PRNewswire/ -- Commonwealth LNG announced it has entered into a Memorandum of Understanding (MOU) with OnStream CO2 LLC, a joint venture between Carbonvert Inc. and Castex Carbon Solutions, LLC, for a carbon capture and storage solution at Commonwealth's 9.3 million tonnes per annum LNG facility under development in Cameron, Louisiana.
Under the agreement, OnStream CO2 will design, construct, own, and operate carbon dioxide (CO2) capture equipment near the Commonwealth LNG site. The captured CO2 will be permanently sequestered at the Cameron Parish CO2 Hub. Commonwealth will dedicate CO2 emitted from the LNG facility for a 20-year term.
The Carbonvert-Castex joint venture recently announced an operating agreement with the State of Louisiana to develop a 24,000-acre tract of land offshore Cameron Parish, where it will permanently store CO2 in a hub with capacity for more than 250 million metric tons.
Commonwealth LNG Founder and Executive Chairman Paul Varello said, "Adding carbon capture technology complements our comprehensive goal of achieving best-in-class environmental standards through measures that also include a focus on responsibly sourced gas and the installation of the highest efficiency gas turbines."
Carbonvert Founder and CEO Alex Tiller said, "Commonwealth's commitment to our storage site is a great first step and instills confidence in the Lake Charles industrial corridor to launch CO2 capture initiatives and enhance resilience amidst carbon-related global trade requirements and customers' increasing demand for low-carbon products."
Castex will serve as the operator for the Cameron Parish CO2 Hub. Castex EVP and CFO Aaron Killian said, "We are pleased to work with Commonwealth LNG to achieve the shared vision of safely, permanently and economically reducing CO2 emissions. OnStream's tailored CO2 capture, transportation, and storage solution will allow Commonwealth LNG to achieve key environmental initiatives while focusing on its core LNG business."
Commonwealth LNG anticipates a final investment decision on its LNG project in the first half of 2024, with first cargo deliveries expected in 2027. Commonwealth will be able to achieve an accelerated construction schedule by using a modular approach with major components being fabricated offsite. Final terms of the carbon capture arrangement remain subject to negotiation of a definitive agreement between the parties.
ABOUT COMMONWEALTH LNG
Commonwealth LNG is developing a 9.3 mtpa liquefied natural gas (LNG) export terminal project located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana. The project's leadership team is committed to building a world-class LNG facility while relentlessly focusing on safety, managing risk and achieving best in class environmental standards.
Website: www.CommonwealthLNG.com LinkedIn: https://www.linkedin.com/company/commonwealth-lng/
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.
Media Inquiries:
Commonwealth LNG
Lyle Hanna
Vice President, Corporate Communications
[email protected]
346-352-4436
Carbonvert
Amanda Biggs
[email protected]
720-642-9610
Castex
Debra James
[email protected]
281-878-0047
SOURCE Commonwealth LNG
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