1PointFive, a subsidiary of Occidental, has entered into a 50/50 joint venture with Enbridge Inc. to develop the Pelican Sequestration Hub and related transportation infrastructure in Louisiana. Under the agreement, 1PointFive will be responsible for developing facilities to store carbon dioxide (CO2) underground, while Enbridge will construct and operate pipelines transporting CO2 from customer sites to the hub.
The project is anchored by a 25-year offtake agreement for approximately 2.3 million metric tons of CO2 annually from CF Industries and its partners JERA Co., Inc. and Mitsui & Co., Ltd., who are planning a low-carbon ammonia production facility in Ascension Parish, Louisiana.
According to the companies, the Pelican Sequestration Hub is expected to support manufacturing and energy production investments in Louisiana and enhance the state’s export capacity.
“We look forward to combining our expertise managing carbon dioxide with Enbridge’s deep capabilities in energy transportation to create a comprehensive solution to unlock value from carbon dioxide,” said Jeff Alvarez, President of 1PointFive Sequestration. “Our project highlights the important role that we believe sequestration can play in strengthening Louisiana’s industries and providing new opportunities for economic development.”
Occidental brings over five decades of experience in storing CO2 underground and aims for the hub to have capacity for up to 20 million tons per year.
The news release also included cautionary statements about forward-looking information, noting that outcomes may differ due to various factors such as technology deployment challenges, regulatory approvals, market conditions, or geopolitical events. Additional details can be found through Occidental’s filings with the U.S. Securities and Exchange Commission at https://www.sec.gov/.
