Louisiana offshore carbon capture facility gets $26 million federal grant

A proposed Cameron Parish offshore carbon capture and storage facility has been awarded a $26 million grant from the U.S. Department of Energy.

OnStream CO2 will use the grant to develop its GeoDura CO2 storage hub, which will store more than 250 million metric tons of carbon dioxide. That’s equivalent to the annual emissions of more than half of all the vehicles registered in the U.S., according to the Environmental Protection Agency.

The storage facility near Monkey Island will handle carbon emissions from the Commonwealth liquified natural gas export facility in Cameron. 

OnStream also announced Monday that Enbridge, a pipeline company, has become a 45% equity partner. Enbridge will serve as the preferred carbon dioxide transportation provider, connecting GeoDura to industrial plants in Lake Charles and Port Arthur, Texas. 

The GeoDura hub will permanently sequester carbon dioxide, helping Louisiana companies meet emission reduction goals, part of the solution to reducing the amount of greenhouse gases in the atmosphere, said Vince Paradis, Enbridge’s vice president of business development.

GeoDura said it expects to begin injecting carbon dioxide into the storage facility in 2028.

The company said it is finalizing a sequestration permit for submittal to the Louisiana Department of Energy and Natural Resources.