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Introducing CCUS Play Fundamentals

Inaugural evaluation identifies winners and losers, supplemental report dives into state water opportunities

byEnverus

CALGARY, Alberta (April 18, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released its inaugural CCUS Play Fundamentals report evaluating the full, source-to-sink value chain of carbon capture and storage at the national, regional and projects levels. In this body of research, EIR examines the investment landscape, regional and operator asset quality, the innovation ecosystem and key partnerships around this developing technology. In a supplemental report, EIR examines CCUS opportunities in state water locations, such as those off the coast of Texas.

“A winning strategy for CCUS projects will require three pieces to fall into place,” said Graham Bain, vice president at EIR. “First, winners will have access to superior asset quality. That means proximity to high volumes of low-cost emissions and access to transportation infrastructure connecting these emissions to high-quality reservoirs. Second, they will need to operate in an ecosystem with supportive regulatory and policy frameworks that incentivizes capital to flow to CCUS. This will accelerate the learning curve, increase efficiency and bring down costs. Lastly, they will need supportive partners. Strong stakeholder engagement will minimize the risk of delays, challenges and project failures and create an atmosphere for success.”

On March 9, the Texas General Land Office began requesting proposals for two leases in Texas state waters for CCUS, prompting EIR to take a deeper look at opportunities in coastal areas like Galveston and Corpus Christi, Texas.

“With nearly 140 mtpa of CO2 capture announced along the Texas Gulf Coast, we’re going to need a place to put it,” said Bain. “The recently announced request for CO2 storage proposals for 700,000 acres around Galveston and 400,000 acres around Corpus Christi likely has operators frothing at the mouth to get control. However, these areas aren’t equal. The Galveston area not only has four times the storage capacity, but it also has 10 times the amount of nearby sub-$65/tonne breakeven capturable emissions and a connection to Denbury’s Green line.”

Key takeaways:

  • The U.S. has emerged as the clear leader in CCUS development due to unmatched data availability, competitive tax incentives and strong engagement from diverse stakeholders. 
  • Louisiana is positioned to win due to high volumes of emissions with low capture breakevens, world class reservoir quality and available CO2 transportation infrastructure. Conversely, EIR models Appalachia as being prohibitively expensive. 
  • EIR does not believe that the Louisiana market is oversaturated, contrary to the industry narrative.
  • Regarding project proposals in Texas state waters, EIR believes the Galveston region offers superior subsurface potential. The area can accommodate 7.7 Gt of CO2 at a 4% efficiency factor and maintain injection rates of up to 1.7 Mt/well/year, with an average storage breakeven of $8.70 per tonne. In contrast, Corpus Christi holds capacity for 1.9 Gt of CO2 and can sustain injection rates of 2 Mt/well/year at a slightly higher breakeven of $10.80 per tonne.
  • Galveston is proximate to a higher volume of low-cost emitters. We model 111 mtpa of sub-$65/tonne point source emitters within 30 miles of the lease block, compared to only 12.3 mtpa of the same quality CO2 emissions around Corpus Christi.
Source-to-Sink Analysis for US CCUs Evaluation
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Play Fundamentals is an EIR research series that dives into a key geographical basin or technology. A collective series, with each play updated annually, it includes technical research and interactive maps, investment opportunities, benchmarking, macro trends and basin analytics, empowering readers to make intelligent connections and, overall, more informed investment, operating and strategic decisions. It is considered the most in-depth research EIR offers and among the most-read analysis series in the energy industry.

Members of the media should contact Jon Haubert to schedule an interview with one of Enverus’ expert analysts.

Additional Resources:

About Enverus
Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing, and our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.

About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters. Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser.

Media Contact: Jon Haubert | 303.396.5996

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