GULF COAST
Major Natural Gas Supply Deal for Texas Data Center
Energy Transfer has secured a 450,000 MMBtu per day natural gas supply deal for the proposed CloudBurst data center in San Marcos, Texas.
The 1.2 GW "behind-the-meter" project will receive nearly 0.467 Bcf per day, sufficient to produce 3.5 mtpa of LNG (around 45 cargoes per year).
Commentary: A facility like this may seek carbon offsets to account for gas-fired power emissions.
Texas Approves First Geothermal Well Permit
The Railroad Commission of Texas has issued its first deep geo-pressured geothermal well permit to Sage Geosystems Inc.
The well, located in Atascosa County, south of San Antonio, will generate electricity for the San Miguel Electric Cooperative.
Commentary: Geothermal potential in Texas remains uncertain. A similar study in the 1970s concluded that natural gas was a more viable option, and little has changed since.
Energy Transfer to Install Carbon Capture at Louisiana Facility
Energy Transfer is adding a new Carbon Capture unit at its Clear Lake Amine Plant in Louisiana.
The new amine treating unit will increase CO₂ removal capacity from 65,000 metric tons per year (2023 levels).
Commentary: Class II wells near gas processing plants have been used for CO₂ injection, and this trend will continue to grow.
Golden Pass LNG Terminal Gains Export Permit Extension
U.S. Secretary of Energy Chris Wright has approved an LNG export permit extension for the Golden Pass LNG Terminal in Port Arthur, Texas.
Golden Pass, owned by QatarEnergy and ExxonMobil, is set to begin exports later this year, becoming the ninth large-scale U.S. LNG export terminal.
Commentary: Gas exports will benefit under the current administration.
Support for CCS in Louisiana
Tommy Faucheux, President of the Louisiana Mid-Continent Oil and Gas Association, has written a public letter in support of CCS in Louisiana.
New Data Center with CCS Proposed in West Texas
Sharon AI and New Era Helium (Nasdaq: NEHC) are considering a new data center with CCS in Ector County, Texas (Odessa).
Commentary: The number of proposed data centers continues to rise, but it's uncertain how many will reach Final Investment Decision (FID).
Baker Hughes & Woodside Energy Partner on Net Power Development
Baker Hughes and Woodside Energy have signed a Technology Development Agreement (TDA) to advance an industrial-scale Net Power platform.
The agreement will support ongoing testing at the La Porte, Texas, facility and future utility-scale plant development.
Meta Announces $10 Billion AI Data Center in Louisiana
Meta confirmed plans to build a massive data center in Richland Parish, Louisiana, on a 2,250-acre site.
The 4-million-square-foot facility will support AI model training for Meta’s Llama AI models.
Construction Timeline: Site work begins in December 2024, with construction continuing through 2030.
Power Needs: The full build-out will require over 2GW of power, making it one of the most energy-intensive AI data centers in the U.S.
USA
DOE Headquarters & Maryland Offices Slated for Disposal
The Trump administration has included the Department of Energy’s headquarters in Washington, D.C., and Maryland offices on a list of properties slated for disposal.
Commentary: This move could make working for the DOE harder in the short term and less attractive in the long term. Since two-thirds of the Department focuses on nuclear energy, this may cause unnecessary chaos in a strategic technology sector.
Canada Threatens Retaliatory Energy Tariffs
In response to 25% tariffs imposed by the Trump administration, Canada has threatened retaliatory tariffs and potential trade cut-offs with the U.S., including energy exports.
Impact: Canada supplies more than half of U.S. oil imports, and New England is highly dependent on Canadian electricity.
Commentary: Companies are scrambling for waivers, but the impact on Midwest farmers and broader energy markets remains to be seen.
45Q Tax Credit Generated Nearly $30 Billion in 2023
The Joint Committee on Taxation reported that the 45Q tax credit generated $29.8 billion in tax credits in 2023 for carbon capture and storage (CCS) projects.
Commentary: This is the first concrete figure on 45Q’s financial impact—expect companies benefiting from these credits to lobby hard for their continuation and expansion.
Senator Cramer Proposes 45Q Adjustments
The proposed bill includes:
Equalizing credit values across geologic storage, enhanced oil recovery, and utilization for both point-source capture and DAC.
Increasing point-source CCS tax credits to $120 per ton in 2025-2026 (~40% increase).
Keeping DAC credits at $180 per ton.
Adjusting the inflation calculation to use 2023 as the base year instead of 2025.
Maintaining 2027 as the first year of inflation adjustments.
Trump Expands CCS Policies Through Executive Orders
President Donald Trump signed executive orders declaring a national energy emergency and directing agencies to:
Expand domestic energy production and streamline infrastructure projects.
Facilitate leasing, siting, production, transportation, and refining of U.S. energy resources.
The orders signal strong support for CCS, aligning with Trump’s previous expansion of 45Q tax credits under the 2018 Bipartisan Budget Act.
South Dakota Bans Eminent Domain for CO₂ Pipelines
Governor Larry Rhoden signed legislation prohibiting eminent domain for CO₂ pipelines, making it significantly harder to develop CCS infrastructure in the state.
This directly impacts Summit Carbon Solutions’ $9 billion CO₂ pipeline project, which relies on agreements with landowners across South Dakota.
Industry Impact:
Summit may struggle to reach its 18 mtpa CO₂ sequestration goal.
Navigator’s Heartland Greenway pipeline was already canceled.
One Earth Energy faces new hurdles in expanding its CCUS infrastructure.
Frontier Carbon Solutions & Baker Hughes Announce CCS Partnership
Frontier Carbon Solutions has partnered with Baker Hughes to develop large-scale CCS & power solutions across the U.S.
Key Highlights:
Frontier’s SCS Hub in Wyoming (nearly 100,000 acres) will provide open-access CO₂ storage for industrial emitters and ethanol producers using a CO₂-by-rail strategy.
Baker Hughes will supply CO₂ compression, well design, and NovaLT™ gas turbines to support CCS infrastructure and power solutions for data centers and industrial customers.
Natural Gas-Powered Data Centers Driving CCS Growth
Massive load growth from data centers is fueling CCS investment, with Big Tech expected to spend ~$400 billion on energy projects in 2025.
More companies are pursuing natural gas-powered data centers with CCS to balance reliability and emissions reduction.
TGS Expands CO₂ Storage Assessments
TGS has expanded its CO₂ storage assessments to include seven additional basins across the Gulf Coast and Midwest.
TGS Storage Assessments
INTERNATIONAL
Project Poseidon (UK) Injection Test Advancing
The Leman injection test is progressing rapidly, with multiple successful CO₂ injection batches completed in the first two weeks.
Petrodec logistics has efficiently transported CO₂ from vessel to the ERDA rig on schedule.
Saudi Aramco Awards $1.5B CCS Contract
Larsen & Toubro secured a $1.5 billion EPC contract for Saudi Aramco’s Accelerated Carbon Capture & Sequestration Hub.
Set to be operational by 2027, the hub will capture 9 mtpa of CO₂ from gas plants and industrial sources.
Japan Approves Emissions Trading System (GX-ETS)
Japan’s GX Promotion Act introduces a national cap-and-trade system launching in FY2026.
Companies receive free emission allowances but must offset excess emissions or pay a penalty at 10% above the trading price cap.
Commentary: Free allowances weakened the EU ETS; Japan’s approach is similar. The U.S. is locked into 45Q tax credits, but a global carbon trading market remains the most logical long-term solution.
Alberta Approves First Open-Access CCS Hub
Bison Low Carbon Ventures has received D065 scheme approval from the Alberta Energy Regulator (AER) for the Meadowbrook Carbon Storage Hub.
Meadowbrook is the first project under Alberta’s open-access CCS hub initiative to move forward.
Located in Sturgeon County, it is expected to begin commercial operations before the end of 2025.
Eni Expands Low-Carbon & CCS Strategy
Italian energy giant Eni is increasing investments in low-carbon projects, including:
Creating a dedicated CCS division.
Supplying electricity to power data centers, aligning with the tech sector’s growing energy needs.
Orlen & Equinor Partner on CCS in Poland
Orlen (Poland) and Equinor (Norway) have joined forces to decarbonize Poland’s hard-to-abate industries through carbon capture and storage solutions.
Malaysia Introduces Carbon Capture Legislation
The Carbon Capture, Utilization, and Storage (CCUS) Bill 2025 has received its first reading in Malaysia’s parliament.
The bill covers CO₂ capture, transportation, utilization, and permanent storage regulations.
Economic Impact Projections:
The CCS industry could generate 200,000+ jobs.
The sector could add $250 billion to Malaysia’s economy within 30 years.
Minister Rafizi Ramli has emphasized the global race to develop CCS hubs, which will shape the future energy landscape.
OTHER
Google Triples Investment in Carbon Removal
Google has tripled its commitment to carbon dioxide removal (CDR), investing over $100 million in CDR credits—three times its 2023 pledge.
This signals growing confidence in CDR markets and rising demand for high-quality carbon credits.
Google’s sustainability strategy aligns with the tech industry’s push to mitigate data center emissions and reach net-zero operations.
Commentary: Big Tech is taking CDR seriously. Expect more companies to follow as voluntary carbon markets mature and regulatory pressure increases.
FERC to Review AI Data Center Energy Demands
The Federal Energy Regulatory Commission (FERC) is launching an inquiry into AI-enabled data center co-location at power generation sites, focusing on PJM, the nation’s largest grid operator.
The review will assess whether PJM’s tariff needs updates to clarify rules, ensure grid reliability, and maintain fair costs for consumers.
The inquiry is driven by increasing AI and cloud computing loads, sparking new proceedings on data center energy integration.
Commentary: With AI data centers consuming increasing amounts of power, grid stability and pricing will be a major regulatory focus.
Heirloom & United Airlines Partner to Scale DAC for Aviation
Heirloom Carbon Technologies and the United Airlines Sustainable Flight Fund are partnering to scale direct air capture (DAC) for Net Zero aviation.
United has made an equity investment in Heirloom, supplementing their $150M Series B round.
The Fund has secured the right to purchase up to 500,000 tons of carbon dioxide removal (CDR), which can be used for:
Sustainable aviation fuel (SAF) production, or
Permanent underground CO₂ storage.
Commentary: This is a significant step in integrating DAC into aviation decarbonization, signaling growing corporate investment in high-quality CDR solutions.
How Do We Monitor a CCS Project?
Example: Kern County, California – Carbon TerraVault I, LLC
Annual injection rate: Up to 1.46 million tonnes for 26 years.
Storage area: ~17 miles long, ~7 miles wide.
Direct Monitoring Techniques
Pressure Front Monitoring – Key monitoring wells (341-27R, 328-25R, 376-36R) track depressurization in the depleted Monterey Formation reservoir.
In-Zone Monitoring Wells – Placed near area of review (AoR) edges, continuously measuring pressure and temperature to detect CO₂ arrival.
Underground Source of Drinking Water (USDW) Monitoring Wells – Two dedicated wells track pressure and temperature in overlying formations.
Fluid Sampling – Periodic CO₂ concentration measurements confirm model predictions and storage security.
Indirect Monitoring Techniques
Seismic Monitoring Network – Detects pressure-induced seismic events with 1,000 ft vertical resolution, distinguishing between injection zones and shallower formations.
Pulsed Neutron Logging (PNL) – Measures gas saturation and CO₂ concentration, aiding in plume tracking and dynamic model calibration.
Commentary: To this, I would add strategic 4D seismic imaging.
Assessing Peak Risk in CCS Storage Projects
Developing a risk assessment model for CCS storage projects requires a data-driven approach.
The process begins with a storage complex that has completed the identification phase.
Example Workflow for Estimating Peak Risk:
Site Characterization – Assess geology, permeability, and storage potential using historical data.
Dynamic Modeling – Simulate CO₂ injection and migration behavior.
Risk Assessment – Identify faults, fractures, and pressure buildup zones.
Monitoring Strategy – Develop a real-time monitoring framework integrating direct and indirect techniques.
Mitigation Measures – Establish contingency plans for unexpected pressure anomalies or induced seismicity.
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