OnStream CO2, LLC has announced the receipt of a $26 million grant from the U.S. Department of Energy (DOE) to further develop its GeoDura CO2 Storage Hub. This grant, part of the CarbonSAFE Phase III initiative, will support OnStream’s efforts in geological assessments, permitting, and community engagement for the project. Completing the permitting process is crucial for the project’s success.
OnStream plans to store over 250 million metric tons of CO2 at the GeoDura CO2 Storage Hub, located offshore of Cameron Parish along Louisiana’s southern coast. The hub will become operational by 2028.
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GeoDura: Louisiana’s First Offshore Multi-Source Carbon Storage Hub
The GeoDura CO2 Storage Hub is poised to become the first multi-source offshore carbon storage facility in Louisiana. By storing large quantities of CO2, the hub will play a vital role in helping reduce carbon emissions in the region. This project aligns with both state and federal climate goals aimed at mitigating the effects of greenhouse gases.
With the $26 million DOE grant, OnStream will advance geological assessments and secure permits to move the project forward. The company is finalizing the Class VI permit for submission to the Louisiana Department of Energy and Natural Resources.
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Enbridge Joins OnStream as Equity Partner
In a significant development, Enbridge Inc., a major North American midstream company, has joined OnStream as a 45% equity partner. This partnership will bolster OnStream’s ability to deliver the planned CO2 storage and transportation solutions across southern Louisiana.
Enbridge will also serve as OnStream’s preferred CO2 transportation provider, leveraging its expertise in large-scale infrastructure projects. This collaboration further strengthens the development of the GeoDura CO2 Storage Hub and sets the stage for additional CO2 projects in the future.
“Carbon capture and storage projects are part of the solution to help lower greenhouse gas emissions,” said Vince Paradis, Enbridge’s Vice President of Business Development. “OnStream’s GeoDura carbon storage project will enable customers to safely and permanently sequester carbon dioxide and we’re excited to work with them to help companies in Louisiana meet their emission reduction goals.”
Project Progress and Next Steps
OnStream’s GeoDura project has made substantial progress since its inception. Key milestones include securing permits to drill a stratigraphic test well, which is essential for assessing feasibility.
The project is currently negotiating with regional industrial customers for carbon capture and storage (CCS) solutions. These efforts will help mitigate CO2 emissions in the area.
Injection operations are set to begin in 2028, and the GeoDura CO2 Storage Hub will significantly impact carbon management. It will support local industries and contribute to broader climate objectives.