Denbury to transport and store CO2 from Mitsubishi’s ammonia project

Energy company Denbury and Mitsubishi Corporation have executed a term sheet for the transport and storage of CO2 from Mitsubishi’s proposed ammonia project on the Gulf Coast of the US.

Denbury Executes Term Sheet with Mitsubishi Corporation for CO2 Transport and Storage from Ammonia Project
Illustration only; Courtesy of NYK

The agreement between the companies stresses their shared interest in energy and low-carbon opportunities. That is to say, Mitsubishi is more focused on the production of ammonia fuel, while Texas-based Denbury deals with carbon transportation and storage solutions.

Mitsubishi wants to introduce its ammonia fuel to the Japanese market. The production firstly commences from its ammonia project Gulf Coast facility in the latter half of the decade. It will produce around one million metric tons per annum (mmtpa) of ammonia. Likewise, the associated CO2 emissions amount to around 1.8 mmtpa.

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Key highlights of Denbury’s term sheet with Mitsubishi include:

  • Denbury will transport and sequester all of the CO2 captured at Mitsubishi’s ammonia facilities;
  • The company may utilize the captured CO2 in its enhanced oil recovery operations or for storage in other sites.
  • The term sheet contemplates an initial period of 20 years, with the ability to extend further. Total volumes under the arrangement could surpass 50 million metric tonnes of CO2.
  • Mitsubishi’s ammonia facilities will be located in close proximity to Denbury’s CO2 Green Pipeline system.

In addition,  there is also the potential for additional ammonia projects to follow.