For the Timberlands Sequestration Project CarbonSAFE Grant Project, vendors will be selected in accordance with Timberlands Sequestration’s procurement policy, which complies with 2 CFR Part 200, and the requirements of the prime award with the U.S. Department of Energy.
Blue Sky Infrastructure’s storage locations were strategically selected to provide for the lowest cost CO2 transportation and sequestration solution in the region and the least complex permitting and execution pathway.
Our selection criteria included proximity to industrial CO2 sources, avoiding population centers, minimal subsurface complexity (e.g., faulting and lithological heterogeneity), avoiding existing artificial penetrations (e.g. existing oil and gas wells), minimal sensitive environmental resource impacts (including protected wetlands), and easy surface and utility access. In addition, we designed the pipeline route with no or minimal impacts to communities and sensitive environmental resources and planned for feasible crossings of jurisdictional infrastructure and congested utility corridors.
Blue Sky Infrastructure commenced the permitting process for multiple EPA Class VI CO2 injection wells and is preparing for key pipeline system permits.
Blue Sky Infrastructure’s River Parish Sequestration Project is expected to be ready to begin transportation and sequestration in 2026.
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News
Blue Sky Infrastructure Secures Financing from Blackstone
December 30, 2021 – Private equity funds managed by Blackstone Energy Transition Partners (Blackstone) have taken a controlling ownership position in Blue Sky Infrastructure, LLC.
Financing from Blackstone will be used to fund Blue Sky’s carbon capture and sequestration development activities. Initial Blackstone equity contributions will be invested into the development of the River Parish Sequestration (RPS) project. RPS is a large-scale underground CO2 sequestration hub near the Geismar-Donaldsonville area of Louisiana. The RPS project will permanently store CO2 gathered from industrial emitters located along the Mississippi River industrial corridor between Baton Rouge and New Orleans.
Carbon Storage Infrastructure Solutions
for a Cleaner World
Carbon Storage Infrastructure Solutions
for a Cleaner World
Transportation & Sequestration Services for CO² Emissions
Transportation & Sequestration Services for CO² Emissions
Carbon Storage Infrastructure Solutions
for a Cleaner World
Carbon Storage Infrastructure Solutions
for a Cleaner World
Transportation & Sequestration
Services for CO² Emissions
Transportation & Sequestration
Services for CO² Emissions
Blue Sky Infrastructure provides transportation and geologic sequestration services for CO² emissions to US industrial facility sources that produce essential commodity products such as chemicals, fertilizer, cement, lime, steel, iron, petroleum-based transportation fuels, natural gas processing, and paper products.
Blue Sky Infrastructure has a portfolio of CO² sequestration projects across the US Gulf Coast and southeast where it will develop, construct, and operate CO² pipeline transportation and underground injection infrastructure. Blue Sky Infrastructure will receive captured CO² from industrial manufacturing facilities and transport this CO² on pipelines to injection well sites permitted under the EPA’s Underground Injection Control (UIC) program for permanent storage.
The industrial and chemical corridor in Louisiana along the Mississippi River between Baton Rouge and New Orleans is the second most concentrated cluster of heavy industrial CO2 emissions in the United States. This 100-mile corridor contains over 55 industrial manufacturing plants that emit more than 60 million metric tons of CO2 annually, or approximately 8% of total US CO2 emissions from heavy industry (EPA 2019 data).
Near the Geismar-Donaldsonville area, Blue Sky Infrastructure has secured underground CO2 injection and storage rights underlying over 30,000 surface acres with geology capable of storing at least 14 million metric tons of CO2 annually and approximately 400 million metric tons of CO2 in aggregate. The injection and storage rights provide Blue Sky Infrastructure with access to world-class underground CO2 sequestration reservoirs, with 2,000-3,000 vertical feet of usable injection formations. The injection zones are saline-saturated, highly porous and permeable sandstone packages 5,000 to 11,000 feet beneath the surface. Multiple redundant sealing layers hundreds of feet thick comprised of impermeable shales, mudstones, and marls above and below the injection reservoirs ensure injected CO2 remains permanently confined in the storage zones.
Blue Sky Infrastructure’s storage locations were strategically selected to provide for the lowest cost CO2 transportation and sequestration solution in the region and the least complex permitting and execution pathway.
Our selection criteria included proximity to industrial CO2 sources, avoiding population centers, minimal subsurface complexity (e.g., faulting and lithological heterogeneity), avoiding existing artificial penetrations (e.g., existing oil and gas wells), minimal sensitive environmental resource impacts (including protected wetlands), and easy surface and utility access. In addition, we designed the pipeline route with no or minimal impacts to communities and sensitive environmental resources and planned for feasible crossings of jurisdictional infrastructure and congested utility corridors.
Blue Sky Infrastructure commenced the permitting process for multiple EPA Class VI CO2 injection wells and key pipeline system permits.
Blue Sky Infrastructure’s River Parish Sequestration Project is expected to be ready to begin transportation and sequestration in 2026.
Blue Sky Infrastructure’s storage locations were strategically selected to provide for the lowest cost CO2 transportation and sequestration solution in the region and the least complex permitting and execution pathway.
Our selection criteria included proximity to industrial CO2 sources, avoiding population centers, minimal subsurface complexity (e.g., faulting and lithological heterogeneity), avoiding existing artificial penetrations (e.g. existing oil and gas wells), minimal sensitive environmental resource impacts (including protected wetlands), and easy surface and utility access. In addition, we designed the pipeline route with no or minimal impacts to communities and sensitive environmental resources and planned for feasible crossings of jurisdictional infrastructure and congested utility corridors.
Blue Sky Infrastructure commenced the permitting process for multiple EPA Class VI CO2 injection wells and is preparing for key pipeline system permits.
Blue Sky Infrastructure’s River Parish Sequestration Project is expected to be ready to begin transportation and sequestration in 2026.
RPS Project Provides Significant Benefits
Carbon capture and underground storage of CO2 (CCS) has meaningful economic benefits for America, the State of Louisiana, and particularly for the Mississippi River industrial and chemical corridor (Louisiana Industrial Corridor). Blue Sky Infrastructure estimates at least $50 billion of CCS investment across the Louisiana Industrial Corridor over the coming decades to decarbonize existing and new-build facilities. The River Parish Sequestration project that will serve as a large-scale and low-cost CO2 storage hub for the Louisiana Industrial Corridor will help to catalyze this investment.
The successful deployment of CCS in the Louisiana Industrial Corridor will competitively advantage existing and future facility operators at the base of the cost-curve for low carbon heavy industry, thereby enhancing the competitiveness of U.S. heavy industry and strengthening export opportunities for US manufacturers.
Key Project Milestones
Pore Space
By the end of 2022, we secured CO2 injection and storage rights underlying over 30,000 surface acres across Ascension, Assumption, and Iberville Parishes.
Storage Facilities
Palo Alto Stratigraphic Test Well
In Q2 2023, we successfully drilled the Palo Alto stratigraphic test well in Ascension Parish, the first test well in Louisiana’s River Parishes. We recovered 640 feet of whole core, sampled formation fluids, and ran a full suite of wireline logs. Analysis of the test well data indicates the geology underlying our storage site acreage is very well suited for large-scale CO2 sequestration.
Smoke Bend Seismic Survey
In Q2 2023, we conducted the Smoke Bend seismic survey to supplement existing 3D and 2D seismic coverage. With the Smoke Bend survey, Blue Sky has seismic survey coverage for its first three injection well locations.
Class VI Permit Applications
In Q2-Q3 2023, we submitted Class VI permit applications to EPA Region 6 and Louisiana Department of Natural Resources (LDNR) Injection and Mining Division. The Class VI applications for the RPS Project were then deemed administratively complete by EPA Region 6.
Pipeline System
Survey and Geotechnical Analysis
In Q1-Q2 2023, we surveyed the initial phase of the RPS Project’s pipeline route and storage sites, including geotechnical borings for a pipeline crossing of the Mississippi River to connect CO2 sources in Geismar to our storage site.
Joint Permit Application
In Q2 2023, we submitted a Joint Permit Application to the U.S. Army Corp of Engineers and LDNR, Office of Coastal Management.
DOE CarbonSAFE Grant
In Q4 2023, US Department of Energy (DOE) selected the River Parish Sequestration Project for a $26 million Phase III CarbonSAFE grant award negotiation. DOE grant funding will help finance our second stratigraphic test well. This test well will be designed and completed to be converted into a Class VI injection well.
Expected Future Milestones
Drill our second stratigraphic test well in 2025 that will be converted to an injection well.
Obtain Class VI injection well authorizations to construct from EPA and LDNR in 2025.
Commence initial project construction in 2025/2026 with operations in 2026/2027.
Community Benefits Plan & Community Engagement
RPS has started to develop a comprehensive Community Benefits Plan to provide direct benefits to the communities where the project is located. Components of the Community Benefits Plan include:
- Establishing a Community Benefits Fund to pay for projects and programs that directly benefit local communities that is funded with a portion of the RPS Project’s revenue.
- Working with River Parishes Community College to provide curriculum support and guest lecture opportunities to help students better prepare for jobs in energy transition fields.
- Hosting and sponsoring community engagement events, which will be fostered by LSU, throughout the life of the project.
- Developing a plan to generate quality jobs during construction and operation of the project.
The Timberlands Sequestration (TS) Project is a carbon capture and storage project for a pulp and paper mill in Alabama. The TS Project will be designed to capture approximately 2 million metric tons per annum of CO2 for 30 years from the mill’s flue gas stream and inject that CO2 underground for permanent storage.
The TS Project will consist of a carbon capture plant that will remove CO2 from the mill’s flue gas, a pipeline that will transport dense-phase CO2 from the capture plant to the storage site, a Class VI well for CO2 injection into saline reservoirs 4,000 to 7,000 feet beneath the surface, and monitoring wells to track the injected CO2, injection formation fluids, and sample underground sources of drinking water during and after operations. When fully constructed, the TS Project will be capable of storing 60 million metric tons of CO2 over 30 years.
DOE CarbonSAFE Grant
In Q2 2023, DOE selected the TS Project for a Phase III CarbonSAFE grant award negotiation. The grant award will be used to advance the development of all facets of the project: capture plant engineering and design, pipeline system engineering and design, storage site characterization and design, and permitting. We anticipate commencing the grant-funded work in January 2024. This work is expected to take over 2 years to complete.