OnStream CO2, LLC, a developer of carbon storage projects along the southern coast of Louisiana, announced that that it has received a $26 million CarbonSAFE Phase III grant from the U.S. Department of Energy.
This grant will be used to advance OnStream's development of the GeoDura CO2 Storage Hub, which will be able to safely store more than 250 million metric tons of CO2 in an area offshore of Cameron Parish. The grant will assist OnStream in undertaking work relating to the project's geological assessment, as well as permitting and community engagement. GeoDura is set to become the State's first multi-source offshore carbon storage hub, with injection operations expected in 2028.
In addition to today's news, a wholly owned subsidiary of Enbridge Inc., North America's largest midstream company, has become a 45% equity partner in OnStream alongside Carbonvert, LLC and Castex Carbon Solutions, LLC. As a part of its commitment to OnStream, Enbridge has agreed to act as OnStream's preferred CO2 transportation provider. Adding Enbridge's extensive transportation project and operational expertise to the joint venture strengthens OnStream's ability to deliver currently planned and future CO2 projects across Southern Louisiana.
"Carbon capture and storage projects are part of the solution to help lower greenhouse gas emissions," said, Vince Paradis, Enbridge's Vice President of Business Development. "OnStream's GeoDura carbon storage project will enable customers to safely and permanently sequester carbon dioxide and we're excited to work with them to help companies in Louisiana meet their emission reduction goals."
"We are grateful to have Enbridge as a partner that seeks to make a positive environmental impact and support the needs of our customers across the region," said Castex EVP and CFO Aaron Killian. "The DOE's grant for our GeoDura Carbon Storage Hub underscores the government's confidence in the strength and environmental benefits of this project."
"We are thrilled to be partnering with Enbridge in Louisiana. They have the expertise required to make this a world class open access carbon solution for the entire region," said Alex Tiller, Carbonvert CEO and President. "By working in close collaboration with local, state, and federal officials and community members, the OnStream CO2 partnership has established a CCS project model that benefits industry and the environment."
