(Sempra, 23.May.2022) — Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), has signed a participation agreement with TotalEnergies, Mitsui & Co., Ltd. and Mitsubishi Corporation for the development of the proposed Hackberry Carbon Sequestration (HCS) project in Southwest Louisiana.
The participation agreement contemplates that the combined Cameron LNG Phase 1 and proposed Phase 2 export projects would potentially serve as the anchor source for the capture and sequestration of carbon dioxide (CO2) by the HCS project. It also provides the basis for the parties to enter into a joint venture with Sempra Infrastructure for the HCS project.
“We are excited to advance the development of the Hackberry Carbon Sequestration project, the first of Sempra Infrastructure’s net zero solutions projects, to help Cameron LNG produce cleaner liquefied natural gas (LNG) for its customers,” said Justin Bird, CEO of Sempra Infrastructure. “This project is expected to be among the first North American carbon capture facilities designed to receive and store CO2 from multiple sources, and our goal is for this facility to set the gold standard for safe and permanent CO2 storage.”
Last year, the Hackberry Carbon Sequestration project filed an application for a Class VI Injection well permit from the US Environmental Protection Agency for permanent storage of up to 2 million tonnes per annum of CO2.
“We are excited to welcome new investment from Sempra Infrastructure and its partners in support of our state’s emissions reduction plans,” said Louisiana Governor John Bel Edwards. “As Louisiana pursues a goal of net-zero emissions by 2050, projects like the proposed Hackberry Carbon Sequestration facility that feature carbon capture and sequestration allow our state to sustain industry without sacrificing our long-term carbon-reduction goals. In fact, these types of projects position companies in Louisiana to grow and thrive as the world transitions to a low carbon future and to also leverage the geology, workforce, and infrastructure that positions Louisiana to be a hub and world leader in this arena.”
Sempra Infrastructure continues to build a strong business portfolio and is working on a number of initiatives focused on sustainability and the global energy transition to advance its goal to lower the greenhouse gas emission intensity at its LNG facilities while working to provide decarbonization solutions to its customers in North America and in global energy markets.
The development of the Hackberry Carbon Sequestration project is subject to a number of risks and uncertainties, including signing additional project-related agreements, securing all necessary permits, and reaching a final investment decision.