Talos Energy (TALO) is ramping up their Carbon Capture & Sequestration (CCS) business. At this point there is nothing in my current valuation of the stock for this new source of revenue, but it is promising.
From Raymond James: Renewable Energy and Clean Technology
Energy Stat: Trying to Lower Emissions? Instead of Talking About Gas Stoves, Let's Capture More Than 0.1% of CO2
READ MORE: https://raymondjames.bluematrix.com/links2/html/530d9c30-96fa-46f9-b130-27e3365f52a7
The past 12 months have seen the world’s key energy commodities at all-time highs or at least within striking distance. While carbon pricing rarely gets the same level of attention, especially outside the European Union, it too has been at or near record levels throughout the past year. This ostensibly provides an optimal backdrop for accelerating adoption of carbon capture and sequestration (CCS), and indeed it may materialize over time, but as things stand, CCS remains a niche, erasing a mere 0.1% of global CO2 emissions.
This is our annual report on CCS around the world. In addition to a high-level update on the role that CCS is playing in sustainability, we will discuss the key technology aspects of CCS: the front end (capture) and the back end (sequestration). It remains the case that there are very few public plays in this space. More so than practically anything else in clean tech, CCS innovation is led by startups, many of them backed by big-name strategics, and some of which will surely enter the public realm over time. We have a list of 26 CCS companies as part of our database of 640-plus private companies in every vertical of clean tech… let us know if you would like a copy.
Talos Energy (TALO): Good news for CCS - Mar 6
Talos Energy (TALO): Good news for CCS - Mar 6
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Talos Energy (TALO): Good news for CCS - Mar 6
HOUSTON, March 6 (Reuters) - Oil producers Chevron Corp and Talos Energy Inc on Monday said they have tripled the size of a proposed carbon capture and storage hub for the Gulf Coast.
Their joint venture, which includes Carbonvert Inc, plans to collect and bury greenhouse gases from clients in the petrochemical, cement, steel and other industrial businesses along the Texas coast. The cost of the acquisition was not disclosed.
The so-called Bayou Bend hub is one of Chevron's top global bets for carbon capture, utilization and sequestration (CCUS), a potentially multi-trillion dollar market by 2050.
"The market is huge," Chevron's vice president for CCUS, Chris Powers, told reporters at the CERAWeek energy conference by S&P. "In order to meet the ambitions of the Paris Agreement, we are going to do CCUS at massive scale, with multiple hubs like this."
The first injection is expected for around 2026. Timing will depend on the regulatory process and clients needs, said Robin Fielder, chief sustainability officer for Talos.
The group will start to seek long-term customers, including those looking to use CCUS associated with hydrogen production, the executives said.
The venture added nearly 100,000 onshore acres (405 square kilometers) to its existing 40,000 acre site. The expanded area could store more than 1 billion metric tons of greenhouse gases.
The trio said the deal positions their Bayou Bend hub as a storage site for carbon emitted by hard to abate industries in the region, one of the largest industrial corridors in the United States.
Chevron is investing $10 billion through 2028 in its Low Carbon ventures including CCUS and hydrogen fuel. The company is investing in technologies to allow hydrogen transportation, including through ammonia, the company's vice president of hydrogen Austin Knight said during the conference.
While technology for hydrogen production already exists, for transportation in a large scale the technology is still in the early stages, he said.
Their joint venture, which includes Carbonvert Inc, plans to collect and bury greenhouse gases from clients in the petrochemical, cement, steel and other industrial businesses along the Texas coast. The cost of the acquisition was not disclosed.
The so-called Bayou Bend hub is one of Chevron's top global bets for carbon capture, utilization and sequestration (CCUS), a potentially multi-trillion dollar market by 2050.
"The market is huge," Chevron's vice president for CCUS, Chris Powers, told reporters at the CERAWeek energy conference by S&P. "In order to meet the ambitions of the Paris Agreement, we are going to do CCUS at massive scale, with multiple hubs like this."
The first injection is expected for around 2026. Timing will depend on the regulatory process and clients needs, said Robin Fielder, chief sustainability officer for Talos.
The group will start to seek long-term customers, including those looking to use CCUS associated with hydrogen production, the executives said.
The venture added nearly 100,000 onshore acres (405 square kilometers) to its existing 40,000 acre site. The expanded area could store more than 1 billion metric tons of greenhouse gases.
The trio said the deal positions their Bayou Bend hub as a storage site for carbon emitted by hard to abate industries in the region, one of the largest industrial corridors in the United States.
Chevron is investing $10 billion through 2028 in its Low Carbon ventures including CCUS and hydrogen fuel. The company is investing in technologies to allow hydrogen transportation, including through ammonia, the company's vice president of hydrogen Austin Knight said during the conference.
While technology for hydrogen production already exists, for transportation in a large scale the technology is still in the early stages, he said.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group