Talos Energy explores USGC carbon capture

Talos Energy has become the latest US oil and gas company to push carbon capture and storage (CCS) as the industry faces growing pressure to lower emissions.

The Houston-based independent is joining forces with UK clean-energy firm Storegga Geotechnologies to "source, evaluate and develop" CCS projects along the US Gulf coast, including state and federal waters offshore Texas, Louisiana, Mississippi and Alabama.

The oil industry is increasingly turning to CCS as a means of reducing its carbon footprint even though the technology is still relatively untested and expensive. Earlier this year, ExxonMobil announced plans for a CCS hub that could capture all of the CO₂ emissions from refineries and industrial facilities along the Houston Ship Channel at an estimated cost of $100bn or more.

The two will work on CCS ventures with emitters, infrastructure providers, service companies and financing partners, among others. As individual CCS projects mature in the future, each will have separate operating agreements, financing structures and the possibility of more partners. Talos will serve as operating partner of the joint venture, no up-front capital commitments will be required and both companies will share the initial costs equally.

"This joint venture allows us to expand our impact beyond our own assets to provide solutions for removing emissions from critical industrial sectors in our back yard," Talos chief executive Timothy Duncan said.

Talos recently updated its environmental, social and governance goals, and is now targeting a 30pc reduction in greenhouse gas emissions intensity by 2025 from 2018 levels. Storegga is a lead developer of Acorn CCS, the most advanced project of its kind in the UK, with a final investment decision due next year.

By Stephen Cunningham