Thursday 21 September 2023

Carbonvert Inc. (“Carbonvert”) and Castex Energy, Inc., through its wholly owned subsidiary, Castex Carbon Solutions, LLC (“Castex”, together with Carbonvert, the “JV Partners”) are pleased to publicly announce the execution of an operating agreement with the State of Louisiana to develop a 24,000 acre tract of land situated in State waters, offshore Cameron Parish, to permanently store carbon dioxide (“CO₂”). Castex’s decades-long operational, commercial and subsurface experience, combined with Carbonvert’s specialized expertise in carbon capture and storage (“CCS”), position the Cameron Parish CO₂ Hub as a leading choice for regional emitters seeking efficient and sustainable decarbonization solutions.

Based on technical and subsurface studies by Castex and the region’s advantageous subsurface geology, the Cameron Parish CO₂ Hub has a total storage capacity of more than two hundred and fifty million metric tons of CO₂ and will service the region’s high concentration of existing industrial emitters and anticipated greenfield projects, notably ammonia and LNG facilities. The JV Partners are also actively exploring opportunities to repurpose existing pipeline infrastructure to support the project.

In August of 2022, the JV Partners executed a 50/50 joint venture agreement to jointly identify and advance CCS projects in Louisiana. Acting as good stewards of all operated lands, while developing a globally competitive CCS hub, the JV Partners aim to bring both economic and environmental benefits to Cameron and Calcasieu Parishes and the broader surrounding region. Castex will serve as the operator for the Cameron Parish CO₂ hub.

Carbonvert CEO, Alex Tiller, shared, “We firmly believe our Cameron Parish offshore project will help shape Louisiana’s low carbon future. Our CCS project will strengthen the local economy via funds from the newly adopted Louisiana Act No. 378, via the Federal Justice40 requirements, and by attracting new low-carbon focused businesses and related jobs. It will also provide a solution to clean up existing regional CO₂ emissions, which is a win for everyone.”

Castex EVP & CFO Aaron Killian commented: “Castex and Carbonvert look forward to developing the first offshore CO₂ storage hub in Louisiana. Our Cameron Parish project combines premier geologic storage attributes with existing midstream infrastructure to provide a range of tailored solutions to the adjacent industrial corridors in need of economically viable CO₂ storage. The significant environmental benefit and local economic impact of this project align with the mission and vision of the JV Partners and the industries we are collaborating with to address regional CO₂ emissions.”