4 Houston Companies Awarded Federal Funding to Expand Carbon Capture Infrastructure

Published May 17, 2023 by Brina Morales

bp carbon capture operations along Texas Gulf Coast

bp CCS operations along Texas Gulf Coast. (Courtesy: bp)

The U.S. Department of Energy announced $242 million in funding for nine projects, including four led by Houston-based companies, supporting the development of new and expanded large-scale, commercial carbon capture projects.

The funding comes from the Bipartisan Infrastructure Law, which includes investing in clean energy infrastructure programs. The projects selected will expand carbon dioxide (CO2) storage infrastructure to help significantly and responsibly reduce CO2 emissions from power generation and industrial operations. Below are the four Houston companies selected for their projects:

bp America, Inc. received $33.4 million to focus on the characterization and permitting of two commercial-scale storage sites along the Texas Gulf Coast with the capacity to ultimately store up to 15 million metric tons of CO2 per year.
Bluebonnet Sequestration Hub, LLC received $16.4 million for plans to complete the site characterization, permitting, and environmental approvals for the Bluebonnet Sequestration Hub along the Texas Gulf Coast, with the potential for more than 350 million metric tons of total CO2 storage capacity.
Magnolia Sequestration Hub, LLC received $21.5 million for their project that aims to complete the site characterization, permitting, and environmental approvals for the Magnolia Sequestration Hub in Allen Parish, La., with an estimated 300 million metric tons of total CO2 storage capacity.
Timberlands Sequestration, LLC received $23.8 million for plans to complete site characterization efforts to develop a biomass carbon removal and storage project for the Alabama River Cellulose pulp and paper mill located in Monroe County, Al.

The projects fall under phase III of the DOE’s Fossil Energy and Carbon Management’s Carbon Storage Assurance Facility Enterprise (CarbonSAFE) Initiative. The initiative began in 2016 with the goal of addressing the key gaps on the critical path toward Carbon Capture and Storage (CCS) deployment. The companies that submitted project proposals were required to submit Community Benefits Plans detailing how the project will advance quality jobs, environmental justice, and community partnership throughout the project development.

“Thanks to historic clean energy investments, DOE is building out the infrastructure needed to slash harmful carbon pollution from industry and the power sector, revitalize local economies, and unlock enormous public health benefits,” said U.S. Secretary of Energy Jennifer M. Granholm.

The four Houston-led projects demonstrate the region’s commitment to leading the world to an energy-abundant, low-carbon future. bp is one of the more than 20 member companies of the Houston Energy Transition Initiative’s Steering Committee, which strengthens Houston’s position to accelerate global solutions for an energy-abundant, low-carbon future.

Carbon Capture Use and Storage is one of six sector-specific working groups that HETI has established to advance areas where Houston has a distinct competitive advantage.

Learn more about the Houston Energy Transition Initiative.