Denbury Inc. and Mitsui & Co. Ltd. units said they are evaluating opportunities on the Gulf Coast to develop carbon-negative oil projects. 

Sequestering emissions from oil using carbon capture, utilization and storage (CCUS) is the aim of the memorandum of understanding (MOU) between Plano, TX-based Denbury Onshore LLC and Mitsui E&P USA LLC, the U.S. arm of the global trading company.

For Denbury, the agreement “further highlights our strategy of creating significant shareholder value through our CCUS leadership,” said CEO Chris Kendall.

Mitsui’s Toru Matsui, COO of the Energy Business Unit, said “we hope to deepen our relationship with Denbury to further develop our CCUS value chain in the U.S. Through our involvement in developing CCUS projects globally, Mitsui aims to achieve net-zero carbon emissions and create a sustainable and eco-friendly society.”

Mitsui also is involved in advancing carbon-neutral cargoes of liquefied natural gas.

Denbury, long a leading onshore enhanced oil recovery (EOR) specialist, said the potential centers around finding carbon dioxide (CO2) offtake opportunities in Mitsui projects on the Gulf Coast. Mitsui in turn would identify international CCUS opportunities in which it could further collaborate with Denbury. 

The Lower 48-focused independent has used CO2 in its EOR developments on the Gulf Coast and in the Rockies since 2013. Denbury, which reorganized last year, noted that it currently injects more than 3 million tons/year of captured industrial-sourced CO2. 

When Denbury filed for Chapter 11 protection, Kendall said the company’s “unique CO2 EOR-focused strategy will continue to differentiate us from the industry, providing an advantageous solution that significantly reduces the CO2 emissions associated with the production of oil, underpinning our target of reaching full carbon neutrality in this decade.”

Denbury’s goal by 2030 is to “fully offset” the direct and indirect emissions, including from customers, otherwise known as Scope 1, 2 and 3 CO2 emissions.