December 12, 2022,
PLANO, Texas & SEATTLE, Washington–(BUSINESS WIRE)–Denbury Inc. (NYSE: DEN) (“Denbury”) and Weyerhaeuser Company (NYSE: WY) (“Weyerhaeuser”) today announced an agreement for the evaluation and potential development of a CO2 sequestration site in Mississippi. The lease agreement provides Denbury with the exclusive right to develop and operate approximately 16,000 acres of subsurface pore space owned by Weyerhaeuser in Simpson and Copiah Counties in Mississippi. The site is located directly adjacent to Denbury’s NEJD Pipeline in Mississippi, approximately 35 miles south of the company’s Jackson Dome field. Denbury is planning to utilize the site to permanently sequester industrial CO2 in secure underground geologic formations. Weyerhaeuser will continue to manage the timberland acreage as a sustainable working forest.
Denbury estimates the site will have total sequestration capacity of approximately 275 million metric tons of CO2. The site represents Denbury’s first planned CO2 sequestration location in Mississippi, expanding its storage portfolio that already includes sites along the U.S. Gulf Coast in Alabama, Louisiana, and Texas. Denbury intends to drill a stratigraphic test well on the site in 2023 to support the Company’s geologic interpretation and progress Class VI permitting with the EPA.
Nik Wood, Denbury’s Senior Vice President, CCUS, commented, “Our agreement with Weyerhaeuser is a significant step in building out the Gulf Coast’s leading CO2 transportation and sequestration network. The location of this Mississippi site, directly adjacent to our existing pipeline network, provides for a very efficient development and increases the overall flexibility and capacity of our operations. We now have the pathways to move industrial-sourced CO2 from the Mississippi River Industrial corridor north on our NEJD pipeline, west on our Green Pipeline, and east to our previously announced planned storage in southeast Louisiana. We look forward to working with Weyerhaeuser as we develop the safest, most reliable and efficient CO2 transportation and storage system in the Gulf Coast.”
The lease agreement demonstrates Weyerhaeuser’s continued progress on its previously announced plan to grow its Natural Climate Solutions business, including through carbon capture and sequestration (CCS), forest carbon offsets, renewable energy development, mitigation solutions and conservation. Weyerhaeuser has identified multiple locations for potential sequestration projects across a portion of its 7-million-acre footprint in the U.S. South using proprietary geological data covering its lands.
Russell Hagen, Weyerhaeuser’s Senior Vice President and Chief Development Officer, commented, “This agreement represents another important milestone in the growth of our CCS business, and it supports our broader commitment to sustainability and providing natural climate solutions across our land base. We are excited to partner on this project with Denbury and unlock the option value created when combining our uniquely positioned acreage and subsurface ownership with high-quality developers of CCS projects in the Gulf South.”
Denbury is an independent energy company with operations and assets focused on Carbon Capture, Use and Storage (CCUS) and Enhanced Oil Recovery (EOR) in the Gulf Coast and Rocky Mountain regions. For over two decades, the Company has maintained a unique strategic focus on utilizing CO2 in its EOR operations and since 2012 has also been active in CCUS through the injection of captured industrial-sourced CO2. The Company currently injects over four million tons of captured industrial-sourced CO2 annually, with an objective to fully offset its Scope 1, 2, and 3 CO2 emissions by 2030, primarily through increasing the amount of captured industrial-sourced CO2 used in its operations. For more information about Denbury, visit www.denbury.com.
The Denbury Carbon Solutions team was formed in January 2020 to advance Denbury’s leadership in the anticipated high-growth CCUS industry, leveraging Denbury’s unique capabilities and assets that were developed over the last 20-plus years through its focus on CO2 EOR.
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Weyerhaeuser Company, one of the world’s largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2021, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com