The two-year exclusive agreement covers 187,500 acres across Arkansas, Louisiana and Mississippi and spans five potential sequestration sites, including two locations previously identified by Weyerhaeuser as prospective opportunities for carbon capture and sequestration (CCS) development.
Apr 3, 2024
One of the world’s largest private owners of timberlands and a leading wood products manufacturer, Weyerhaeuser Company, has signed an exclusive two-year agreement with full-service CCS developer and operator Lapis Energy LP, for subsurface carbon dioxide sequestration in the southern American States of Arkansas, Louisiana and Mississippi.
As per the statements issued by the two companies, the agreement covers 187,500 acres of subsurface rights owned by Weyerhaeuser and spans five potential sequestration sites, including two locations that were previously identified by Weyerhaeuser as prospective opportunities for carbon capture and sequestration (CCS) development.
Under the agreement, Lapis will determine the sequestration potential of each site. Upon successful completion of the technical and commercial assessments, Lapis will have the option to move sites into full-scale development agreements and complete the work required to permit, build and operate permanent CO2 sequestration sites serving large-scale industrial sources.
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“This exploration agreement represents a unique opportunity to scale our CCS offerings and build our climate solutions portfolio more broadly. We look forward to working with Lapis to unlock the value of CCS development across our ownership in the U.S. South and help other companies reduce their carbon footprint,” said Russell Hagen, senior vice president and chief development officer for Weyerhaeuser.
“We are delighted to form this relationship with Weyerhaeuser, the largest timberland owner in North America with a reputation as a responsible and sustainable landowner. Lapis looks forward to developing these carbon sequestration sites with Weyerhaeuser to provide solutions for regional industrial customers,” said Reg Manhas, CEO of Lapis Energy.
“The announcement, together with our existing assets, further establishes Lapis Energy as an industry-leading independent carbon sequestration storage provider with a rapidly developing portfolio of business opportunities. Lapis believes these sites provide a competitive and advantaged option for our growing customer base north of the Gulf Coast,” he added.
