Denbury-Carbon-Solutions

Denbury Carbon Solutions 

Today, Denbury is one of the leading companies in the Gulf Coast that is actively engaged in CCUS by injecting captured industrial-sourced CO2 in our EOR operations since 2013.  Our core competencies focus on CO2 transportation utilizing our significant existing pipeline infrastructure, the injection and monitoring of CO2 in our EOR operations and our 22 years of experience in engineering, designing and developing EOR fields across a number of geologic basins to expand our CCUS opportunities, to include transportation and storage of captured industrial-sourced CO2, and develop new permanent CO2 sequestration sites.  In order to identify and secure opportunities that build on our leading strategic advantages, we formed Denbury Carbon Solutions in early 2020.  Strategic priorities of the team include:

  • Secure transportation & storage agreements - Generating new cash flow streams through agreements with existing and new build industrial emitters for the transport and storage of captured CO2
  • Develop a portfolio of CO2 sequestration sites - Adding significant permanent storage capacity through development of a geographically diverse portfolio of subsurface sequestration sites providing scale, reliability and flexibility,
  • Replace naturally sourced CO2 in EOR operations - Increasing our proportion of carbon-negative blue oil production by seeking to replace the use of naturally sourced CO2 in the Company's EOR operations with captured industrial sourced CO2,
  • Prepare for 2-3x Infrastructure Expansion - Evaluate and prepare for a capital efficient expansion of up to 2-3x the Company's existing Green Pipeline capacity to meet expected rapid growth in demand,
  • Pursue strategic partnerships - along the CCUS value chain

CO2 Pipeline Infrastructure

We own and operate more than 1,300 miles of CO2 transportation pipelines, strategically located in the Gulf Coast and Rocky Mountain Regions. Features of our infrastructure:

  • Current CO2 pipeline capacity and complementary EOR field operations provide the immediate ability to meet customer demand for safe, reliable and uninterrupted takeaway service. 
  • It is scalable and designed to provide maximum flexibility to meet the needs for a large network of capture locations, EOR use and future permanent storage.  Based on the volume of current and future emissions in proximity to the Green Pipeline, we are evaluating a 2-3x volume expansion of the Green Pipeline to meet future anticipated CCUS demand for transportation and storage.

CO2 Expertise

Denbury has 20+ years of experience managing the transportation, injection and monitoring of large volumes of CO2 in EOR operations.  Our experienced professionals have a breadth and depth of experience identifying suitable geologic structures for CO2 injection, CO2 field monitoring and the operation of CO2 injection wells.

Our Denbury Carbon Solutions team is working to build on this strong foundation to capitalize on the rapidly increasing demand for CCUS solutions.  Our highly skilled, multi-disciplinary team is currently engaged in negotiations with multiple potential customers to transport and store their captured CO2 emissions.  Denbury is immediately able to utilize captured industrial CO2 in our existing EOR fields and is working to develop a portfolio of permanent sequestration locations. 

Blue Oil

Based on the amount of CO2 we utilize in our EOR operations to produce a barrel of oil, when utilizing CO2 captured from industrial sources, the carbon intensity of that oil after combustion is more than offset by the carbon sequestered in the production of that barrel, in a Scope 3 negative barrel or blue oil.  Today, ~25% of our total production is considered blue oil and we expect our blue oil production to increase over time, serving as the primary pathway to completely offsetting our Scope 3 emissions by the end of this decade. We believe our blue oil is a premium barrel that, as we increase the scale of its production, will ultimately help industries with hard to abate emissions, such as aviation or refining, lower their carbon footprint.  

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