12 May CorEnergy Signs MOU with Carbon Sequestration Project Developer
CorEnergy announced today that it has signed an MOU with a carbon sequestration project developer to transport CO2 from the point of capture to the sequestration site.
According to CorEnergy Chief Operating Officer John Grier, “We have spoken about our potential for engaging with project developers and have begun working on specific mandates to enable the transportation of CO2. I am happy to announce that we have signed our first non-binding MOU with a carbon sequestration project developer to provide the transportation solution from origin to destination with several opportunities to expand both in reach and volume.”
Grier added that CorEnergy is in further discussions with other developers for the transportation of CO2 and the company believes this contract to be the first of many. “This MOU and these discussions put us on the doorstep of project scoping and participation with shippers and contracting parties.”
California oil is produced under the strictest environmental and most rigorous regulatory rules in the world. The carbon emissions from California’s producers are among the lowest in the global oil industry, and its refineries produce the cleanest burning formulation of gasoline in the world. By virtue of being a highly efficient transportation system, connecting in-state production to in-state refining, CorEnergy believes it already helps provide the greenest barrel of oil and transportation fuels in the world. But the Company is committed to doing more, and is taking steps to do so.
As the global economy transitions to a lower carbon future, CorEnergy believes it has an important and significant opportunity in its California footprint to help reduce Greenhouse Gas releases through Carbon Capture and Sequestration, or CCS. The commercial case for CO2 capture is better in California than in most other states, which provides the Company with longer term growth potential as part of the network connecting emissions with storage. In fact, California Air Resources Board, or CARB, has released its revised climate plan, which indicated CCS will be a necessary and significant contributor to the state meeting its climate goals.
CorEnergy CEO Dave Schulte added, “Under any version of energy transition plans, CorEnergy is poised to serve our customers and our nation’s critical energy needs for decades to come. We are committed to doing things the right way, ensuring that we are operating in a safe and efficient manner at all times.”
For additional information, see CorEnergy’s First Quarter 2022 Results.