A 50% partnership has been created between Marubeni and Ozona, in order to jointly develop a CCS project. This project is due to be based in South Texas.

A large aim for the US, is to reduce the amount of greenhouse gas emissions by 65% by 2030 and alongside this, they are also hoping to achieve net-zero GHG emissions by 2050. It was in August 2022 that the Inflation Reduction Act was enacted, as a way to support CS implementation and also to support decarbonisation efforts, such as the introduction of renewable energy.

The new and innovative project which will be starting soon, will focus on capturing CO2 that is emitted from multiple gas production and processing plants, which are all located in south Texas. This particular area is also an area that is involved with active exploration and production of oil and gas. Once the CO2 from these plants is captured, it will then be transported through dedicated pipelines to saline aquifers which are located two to three kilometres underground and this is where the captured carbon dioxide will be stored. This project taking place is a truly significant step forwards for the carbon capture industry and for the United States, as it will be a pioneering commercial CCS hub project, based within the US.

Previous to this, Marubeni has been involved in the upstream shale oil and gas sector within Texas. Due to this experience, combining Marubeni’s and Ozona’s development skills and expertise, such as subsurface evaluation within the region, plus their experience with infrastructure business and power business, the two companies will be able to come together and effectively develop a successful and useful project. Both companies have made their aim to come to a final investment decision by the first half of 2025 clear and this will then lead to the commencement of commercial operation by 2026.

Furthermore, the companies have already planned to review other ongoing Ozona projects, which is currently under development in Texas. They hope to find projects that have similar joint development partnership opportunities, with the overall aim of expanding their business.