Blue Energy and Calcuta Resources Form Joint Venture to Build an Oklahoma Carbon-Storage Platform

Anadarko Basin project pairs continued American oil production with permanent CO₂ storage — Blue Energy’s first U.S. operation and the foundation of a new Carbon-Neutral Division

Blue Energy, power supplier and renewable-energy platform owned by EIM Capital, today announced that it has entered into a non-binding memorandum of understanding with Calcuta Resources LLC, an Oklahoma-based enhanced oil recovery (EOR) operator, to form a joint venture to develop one of the larger CO₂ sequestration projects in the Anadarko Basin. The proposed venture would mark Blue Energy’s entry into the United States and anchor a new Carbon-Neutral Division within the company. The memorandum is non-binding and remains subject to definitive documentation, an independent fairness opinion and customary approvals.

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The joint venture would initially develop and operate a carbon-storage project at the Squirrel Creek Cottage Grove Unit (SCCGU) in Dewey County, Oklahoma, a 6,400-acre producing oilfield with the geological capacity to permanently store an estimated 3 to 5 million metric tonnes of carbon dioxide over its operating life. Storing up to 5 million tonnes is equivalent to the annual tailpipe emissions of roughly one million passenger vehicles.

An Oklahoma carbon-storage platform

The venture is a dedicated carbon-storage platform. SCCGU is the first project; additional EOR-to-sequestration candidates have been identified across Oklahoma and Texas. Building on existing field infrastructure lowers capital cost, accelerates time to first injection, and keeps Oklahoma crews at work. The partners intend SCCGU to be the operational template for a wider CO₂ sequestration corridor in the state.

Oklahoma has a long-established CO₂-EOR industry, with legacy operations including Chaparral Energy’s Farnsworth Unit and CapturePoint’s Oklahoma Carbon Hub. Since the One Big Beautiful Bill Act passed in July 2025, no major new operator-led CO₂ storage project has been announced in the state. This joint venture is among the first U.S. projects structured around the expanded credit framework, and the partners hope it will draw additional independent operator capital into Oklahoma and the broader mid-continent.

Proposed structure

Under the terms contemplated by the memorandum, Blue Energy would commit preferred equity capital toward project development, while Calcuta Resources would contribute operatorship, subsurface geology and storage rights, and a dedicated overriding royalty interest on pilot-phase oil production. Carbon revenue — including federal 45Q tax credits, voluntary-market credits and CO₂ storage-offtake fees — would be shared equally between the partners following an initial capital-return period.

Federal policy foundation

Section 45Q of the U.S. Internal Revenue Code was significantly expanded by the One Big Beautiful Bill Act of 2025, which granted enhanced-oil-recovery sequestration full parity with dedicated geologic storage at a credit value of $85 per metric tonne. The credits are transferable to third-party corporate buyers under §6418 of the Code.

Applied to the project’s full estimated storage capacity over its entire operating life, the §45Q program could generate gross federal tax credits on the order of $425 million. This figure is illustrative only. It represents an undiscounted, gross estimate over a multi-decade operating life — not a forecast of revenue, cash flow or value to the joint venture or to Blue Energy — and assumes, among other things, that maximum projected CO₂ volumes are stored, that the project achieves and maintains credit eligibility, that required permits are obtained, and that credits are monetized in the secondary market (where transferable credits typically trade at a discount to face value and the buyer bears recapture risk). Actual credits generated and amounts realized could be materially lower and may be zero. No assurance can be given as to the amount or timing of any §45Q credits.

Climate profile

Independent, peer-reviewed and U.S. Department of Energy–funded lifecycle research on CO₂-based enhanced oil recovery has found that projects of this kind can permanently store more carbon dioxide than the resulting oil emits, particularly in the earlier years of operation.* Blue Energy intends to commission an independent lifecycle assessment of the SCCGU project to quantify its net-carbon position.

A revenue stream independent of the oil price

Carbon revenue depends on tonnes of CO₂ stored and the $85/tonne federal credit, not on oil price. The platform earns through the oil cycle on its own merits, separate from the underlying field’s production economics.

Quotes

“This venture is intended to anchor a corridor of C02 injection projects in Oklahoma,” said Franco Hamdan, Chief Executive Officer of Blue Energy. ““When you study the net emissions of C02 EOR, surprisingly, it beats out most renewable projects because more C02 is captured from sequestration then the resulting barrel emits. We love Oklahoma, and this type of project can take fields stranded for decades and repurpose them to create additional jobs and sources of income, so it’s a rare win-win for everybody”

He added, “the project will also showcase our partners pioneering digital twin field technology that will increase performance through real time optimizations and set a new recovery benchmark for mature fields.”

“SCCGU is a mature oil field which has been re-established and certified for enhanced oil recovery, including secondary water injection and tertiary CO2 injection,” said Mark Falk, Chief Geoscientist of Calcuta Resources. “The field has definitive proven reservoir, trap, and seal: a geologic configuration which trapped and stored hydrocarbons for tens of millions of years. Mature fields like this one are excellent candidates for economic and effective carbon storage, providing potential scalability from concept to industrial reality.”

Contemplated public listing

Blue Energy has previously stated that it is exploring a potential public listing, subject to market conditions. Any such offering, if undertaken, would be made only by means of a prospectus or other offering document filed with the applicable securities regulatory authorities. This release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities.

Related-party transaction and governance

Calcuta Resources is controlled by Blue Energy’s founder and Chief Executive Officer. The joint venture is therefore a related-party transaction and is subject to governance and disclosure provisions consistent with public-market standards, including independent committee approval and an independent fairness opinion prior to closing, and full disclosure in any future offering document.

About Blue Energy

Blue Energy is a power supplier and renewable platform servicing industrial and commercial customers. The company is establishing a Carbon-Neutral Division to anchor its U.S. operations and integrated energy-transition platform.

About Calcuta Resources LLC

Calcuta Resources LLC is a Delaware-domiciled oil and gas operator focused on the redevelopment of mature U.S. oilfields through advanced recovery techniques and integrated carbon sequestration. The company operates the South Cottage Grove Unit in Dewey County, Oklahoma — a 6,400-acre producing unit with an estimated 32.5 million barrels of original oil in place.