Weyerhaeuser partners with Denbury Energy in Miss.
Weyerhaeuser Company and independent energy company Denbury announced an agreement for the evaluation and potential development of a CO2 sequestration site in Mississippi.
“The lease agreement provides Denbury with the exclusive right to develop and operate approximately 16,000 acres of subsurface pore space owned by Weyerhaeuser in Simpson and Copiah Counties in Mississippi,” said the firm.
The site is located directly adjacent to Denbury’s NEJD pipeline in Mississippi, approximately 35 miles south of the company’s Jackson Dome field.
Denbury is planning to utilize the site to permanently sequester industrial CO2 in secure underground geologic formations. Weyerhaeuser will continue to manage the timberland acreage as a sustainable working forest, said the wood products company.
“This agreement represents another important milestone in the growth of our CCS business, and it supports our broader commitment to sustainability and providing natural climate solutions across our land base,” said Russell Hagen, senior vice president and chief development officer for Weyerhaeuser.
The lease agreement demonstrates what Weyerhaeuser called it’s continued progress on its previously announced plan to grow its Natural Climate Solutions business, including through carbon capture and sequestration (CCS), forest carbon offsets, renewable energy development, mitigation solutions and conservation.
“We are excited to partner on this project with Denbury and unlock the option value created when combining our uniquely positioned acreage and subsurface ownership with high-quality developers of CCS projects in the Gulf South,” said Hagen.
Weyerhaeuser said it has also identified multiple locations for potential sequestration projects across a portion of its seven-million-acre footprint in the U.S. South using proprietary geological data covering its lands.
Starting operations in 1900, Seattle-based Weyerhaeuser said it owns or controls approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada.