San Antonio-based environmental services company Ozona CCS, LLC (Ozona) announced on 31 January that it has reached a definitive agreement with Texas Pacific Land Corporation to lease approximately 5,173 contiguous acres of land for the purpose of drilling one of the first commercial CO2 sequestration wells in the Permian Basin.
This project is part of Ozona’s business strategy to provide comprehensive long-term solutions to capture, transport, and sequester CO2. The Permian Basin and the Texas Gulf Coast will be the focus of Ozona’s initial capture and sequestration projects. Initial anchor customers will include natural gas processing plants and oil and gas operators in the region.
Ozona will immediately begin the permitting process with Federal and State regulatory agencies to drill a CO2 disposal well on TPL surface. The acreage has an estimated initial injection rate of up to 25,000 barrels per day and an estimated total storage capacity of at least 40,000,000 metric tons of CO2. The target in-service date will be the third quarter of 2024. The Company can expand the acreage as additional storage capacity needs increase.
“We are excited to collaborate with TPL on the first of its kind project in the Permian Basin,” said Richard Adams, Co-Chief Executive Officer and Chief Operations Officer of Ozona. “Drilling one of the first carbon dioxide sequestration wells in the Permian shows our ability as an industry leader in reducing carbon dioxide in the atmosphere. We continue to build momentum in developing carbon capture projects in the Permian and elsewhere across North America. I am proud of our team and the effort they have put forth to make this a reality.”
“Ozona shares our priorities for conservation and responsible resource management, and this project serves as a significant milestone in bringing scalable carbon capture solutions to the Permian,” said Tyler Glover, CEO of TPL. “We are excited to see Ozona bring these promising projects to reality. Carbon capture opportunities like these align with our goal to leverage our vast surface footprint to support sustainability initiatives and enhance shareholder value.”
Press release by Ozona