Chevron U.S.A., Inc., through its Chevron New Energies division, Talos Energy Inc., and Carbonvert, Inc. have announced a memorandum of understanding (MOU) for an expanded joint venture to develop the Bayou Bend CCS offshore carbon capture and sequestration (CCS) hub.

In 2021, a joint venture between Talos and Carbonvert (now known as Bayou Bend CCS) was the winning bidder for a carbon storage lease, located in state waters offshore Texas. The Bayou Bend CCS project site encompasses over 40,000 gross acres and could potentially sequester 225 to 275 million metric tonnes of carbon dioxide (CO2) from industrial sources in the area. The Bayou Bend CCS lease is the first and only offshore lease in the U.S. dedicated to CO2 sequestration.

Chris Powers, vice president of Carbon Capture, Utilization, and Storage (CCUS) for Chevron New Energies said partnership is required to grow successful lower carbon businesses.

“This venture is an example of the potential that partnering can have in moving large-scale lower carbon projects forward,” he said.

“Talos and Carbonvert have worked to rapidly advance this project, and as a priority project for Chevron in a key industrial area, we are excited to contribute our experience and capability to develop the leading offshore carbon sequestration hub for the region.”

Alex Tiller, president and CEO of Carbonvert said the project is a catalyst that enables dramatic regional carbon emissions reduction to the benefit of local industry, the global community, and future generations.

“We look forward to the opportunity to partner with Chevron on such a monumental project supporting decarbonisation and partnering with customers on their paths to net zero.”

The creation of the proposed joint venture is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval.