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Weyerhaeuser Co., Seattle, Wa., and Lapis Energy LP have executed an exclusive exploration agreement for subsurface carbon dioxide sequestration in Arkansas, Louisiana and Mississippi. 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 exclusive two-year 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.
“This exploration agreement represents a unique opportunity to scale our CCS offerings and build our climate solutions portfolio more broadly,” said Russell Hagen, senior vice president and chief development officer for Weyerhaeuser. “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.”
“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,” said Reg Manhas, CEO of Lapis Energy. “Lapis looks forward to developing these carbon sequestration sites with Weyerhaeuser to provide solutions for regional industrial customers. The announcement today, 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.”
Lapis is the Partner of Choice for energy-intensive industries seeking to achieve their carbon goals through the delivery of carbon capture and sequestration (CCS) projects. Located in Dallas and founded in 2020 by a team of industry-leading experts, Lapis is actively building a world-class portfolio of CCS projects within North America. Lapis is backed by Cresta Fund Management, a Dallas-based investment manager with over $1.5 billion of assets under management specializing in middle-market sustainable infrastructure solutions.
