Lapis Energy and Denbury Form JV to Develop CO2 Sequestration Project in SE Louisiana

DALLAS--(BUSINESS WIRE)--Lapis Energy, LP (“Lapis”) announced today that it has formed a joint venture with a subsidiary of Denbury Inc. (NYSE: DEN, “Denbury”) to design, implement, and operate a carbon dioxide (“CO2”) sequestration (“CCS”) project at Lapis Energy’s 14,000-acre carbon storage site located in St Charles Parish, Louisiana, approximately 20 miles west of New Orleans. Each party will have a 50 percent interest in a newly formed project company, Libra CO2 Storage Solutions LLC (“Libra”). Under the Libra transaction structure, Lapis will lead implementation of the project for Libra through the Class VI permitting process, pre-FID phase and initial construction, with Denbury assuming operatorship and later construction management upon commencement of injection.

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Depending on the scale and pace of emissions agreements dedicated to the site, Denbury intends to connect the sequestration site to its existing CO2 pipeline network in southeast Louisiana with a 45-mile pipeline connection. As part of the agreement, Denbury has committed volumes to support the initial development of the site, contingent upon achieving Class VI injection approval and project sanction, with first injection scheduled for 2027. Libra believes that the site has the potential to hold at least 200 million metric tons of CO2 and, because of its close proximity to industrial hubs, has the potential to become a regional hub decarbonization site.

Lapis CEO Reg Manhas commented, “Lapis is pleased to welcome Denbury, a leading CCUS player, into this exciting project, and we look forward to working in partnership to fully develop the Libra Site. This high-quality CO2 storage opportunity was first identified by the Lapis subsurface team, and Denbury’s entrance has now confirmed its potential commercial attractiveness to emitters in the region. This venture represents the next step in Lapis’ business development plan and, along with our El Dorado CCS project with LSB Industries, provides a platform to accelerate our North American growth and build an industry-leading CCS portfolio, with a number of other opportunities currently under evaluation.”

Nik Wood, Denbury’s Senior Vice President, Carbon Capture, Utilization and Storage, commented, “We are excited to enter this joint venture with Lapis Energy and to expand our sequestration offering in the SE Louisiana area. The potential extension of our pipeline system towards New Orleans would provide significant capacity and flexibility to the Denbury CO2 pipeline network, along with increasing access to new large CO2 emissions markets from both existing and future projects. We intend to provide the industry’s most reliable and efficient CCUS network and this joint venture advances that goal.”

“Carbon capture and sequestration are important to Louisiana’s efforts to reduce carbon dioxide emissions while maintaining jobs and growing our manufacturing base,” said Governor John Bel Edwards. “This effort is a clear demonstration of our ability to grow the Louisiana economy while lowering the carbon footprint of industry.”

St. Charles Parish President Matthew Jewell stated: "Carbon capture's arrival in St. Charles Parish exemplifies our region's innovative spirit of industry. Louisianians have proven to possess the expertise to implement this type of technology which will enhance our community's long-term economic and environmental sustainability. I am eager to learn more about the project and most importantly, determine how our residents and vendors can capitalize on the opportunities afforded by our rapidly expanding energy economy."

About Lapis Energy

Lapis is the Partner of Choice for energy-intensive industries seeking to achieve their carbon goals through the delivery of carbon capture and sequestration (CCS) projects. Located in Dallas and founded in 2020 by a team of industry-leading experts, Lapis is actively building a world-class portfolio of CCS projects within North America. Lapis is backed by Cresta Fund Management, a Dallas-based investment manager with over $1.4 billion of assets under management specializing in middle market sustainable infrastructure. For more information about Lapis, please visit www.lapisenergy.com.

About Denbury

Denbury is an independent energy company with operations and assets focused on Carbon Capture, Use and Storage (CCUS) and Enhanced Oil Recovery (EOR) in the Gulf Coast and Rocky Mountain regions. For over two decades, the Company has maintained a unique strategic focus on utilizing CO2 in its EOR operations and since 2012 has also been active in CCUS through the injection of captured industrial-sourced CO2. The Company currently injects over four million tons of captured industrial-sourced CO2 annually, with an objective to fully offset its Scope 1, 2, and 3 CO2 emissions by 2030, primarily through increasing the amount of captured industrial-sourced CO2 used in its operations. For more information about Denbury, visit www.denbury.com.