- Marubeni Corporation has entered into an agreement to acquire a 50% interest in a carbon dioxide capture and storage project in Texas, funded by Ozona CCS LLC. - The project aims to capture CO2 emissions from several gas production and processing plants in southern Texas and store it in saline aquifers located 2 to 3 kilometers underground. - This initiative is set to be a pioneering commercial CCS hub project in the United States. - Marubeni, which has experience in the upstream shale oil and gas sector in Texas, will combine its capabilities with Ozona's to develop the project, targeting a final investment decision by the first half of 2025 and commercial operations by 2026. - The United States has committed to reducing greenhouse gas emissions by 65% by 2030 and achieving net-zero emissions by 2050, supported by the Inflation Reduction Act which facilitates CCS implementation. - Marubeni's mid-term management strategy aims to strengthen green businesses and promote decarbonization globally, positioning CCS as a critical technology for carbon neutrality. - Ozona CCS, established in 2021, is based in San Antonio, Texas, and specializes in the development and operation of CCS projects. - Ozona possesses significant expertise in oil and gas development, including knowledge in subsurface analysis, permitting, and environmental impact assessment. - CCS projects that begin construction by January 1, 2033, can qualify for tax credits of up to US$85 per ton for CO2 storage for 12 years post-operations commencement.

Joint Development of a Commercial Carbon Dioxide Storage Project in South Texas, United States


Sep. 24, 2024
Marubeni Corporation

Marubeni entered into an agreement to acquire an interest in a business entity funded by Ozona CCS LLC (hereinafter, “Ozona”), which is developing a carbon dioxide capture & storage (hereinafter, “CCS”) project in Texas, United States. Through this agreement, Marubeni will participate in and jointly develop the CCS project (hereinafter, the “Project”) in south Texas with Ozona, with Marubeni’s investment comprising a 50% stake in the Project.


Project Outline
This Project involves capturing CO2 emitted from multiple gas production and processing plants in south Texas (an area with active exploration and production of oil and gas), transporting it via dedicated pipelines, and storing it in saline aquifers 2 to 3 km underground. It will be a pioneering commercial CCS hub*1 project in the United States.

Marubeni has been engaged in the upstream shale oil and gas sector in Texas, and by combining Marubeni’s and Ozona’s development capabilities, including subsurface evaluation in the region as well as infrastructure business and power business, the two companies will develop the Project with the aim of coming to a final investment decision by the first half of 2025 and commencing commercial operations in 2026. Marubeni and Ozona will continue to review other ongoing Ozona projects under development in Texas for potential similar joint development partnerships to expand their businesses.

Background
The United States aims to reduce GHG emissions by 65% by 2030 and achieve net-zero GHG emissions by 2050. To support decarbonization efforts, including the introduction of renewable energy, the Inflation Reduction Act was enacted in August 2022 as a measure to support CCS implementation*2.

Target
In February 2022, Marubeni announced its mid-term management strategy GC2024, aiming to become a frontrunner in green business through “strengthening green businesses” and “promoting green transformation across all businesses.” CCS is an essential technology for achieving global carbon neutrality. Marubeni will leverage the CCS project development expertise gained through this project to contribute to decarbonization in the United States and other countries and regions around the world.

*1 An integrated model that captures and transports CO2 from multiple nearby emission sources and injects it into single or multiple storage sites.

*2 CCS projects that begin construction by January 1, 2033, will be eligible for tax credits of up to US$85 per ton for CO2 storage for 12 years after commencement of operations.

Company Overview
Company Name: Ozona CCS, LLC
Head Office: San Antonio, Texas, United States
Establishment: 2021
Representative: Mr. Rich Adams (Co-CEO, COO), Mr. Eric Friedrichs (Co-CEO, CFO)
Main Business: Development, execution, and operation of CCS projects
Website: https://ozonaccs.com/
Note: Ozona has experience in oil and gas development projects and related businesses, including pipelines operation, in the Permian Basin, Eagle Ford, and Corpus Christi areas of Texas, and possesses expertise and knowledge in various fields, such as subsurface analysis, permitting, and environmental impact assessment.