Talos Energy Inc. and Howard Energy Partners (HEP) have entered into an option agreement with the Port of Corpus Christi Authority to pursue commercial carbon capture and sequestration opportunities on-site at the Port of Corpus Christi. The project will be known as the Coastal Bend Carbon Management Partnership. During the initial nine-month evaluation period, the parties will identify and mature CCS project solutions on Port-owned lands.

With a diverse industrial footprint at the Port of Corpus Christi, transportation infrastructure and expertise from HEP, and subsurface and sequestration capabilities from Talos, the parties are positioned to offer a local, fully integrated CCS project to customers in the region.

The Port of Corpus Christi is a major strategic export hub and one of the largest ports in the U.S., accounting for over $200 B of economic impact from approximately 7,000 vessel shipments annually. Port-related employment accounts for approximately 100,000 jobs in the Coastal Bend area. The Coastal Bend Carbon Management Partnership aims to provide the Port's more than 200 customers with a turn-key CCS solution to participate in meaningful decarbonization efforts.

The lease option agreement encompasses approximately 13,000 acres for CCS project evaluation, with an initial goal to sequester 1.0 – 1.5 MM metric tpy of CO₂ from industrial emissions into saline aquifers utilizing an estimated total storage capacity of 50 – 100 MM metric t. Based on proof of concept and market demand, the parties may expand the project to Regional Hub scale, with the capability to sequester 6 – 10 MM metric tpy  of the approximately 20 MM metric tpy of total regional emissions. HEP's Javelina midstream system is directly connected to over half of the total regional emissions with approximately 60 miles of existing infrastructure, which is ideally situated for gathering activities throughout the Port area.

"We are honored to be working on this project with the Port of Corpus Christi Authority and Howard Energy Partners. We have already commenced our technical and commercial evaluation and are confident in the potential success and positive impact this project can have on the Coastal Bend region," said Talos President and CEO Timothy S. Duncan. "The Port of Corpus Christi is an incredibly important export hub for the United States, and our goal is to offer their large customer base an on-site decarbonization solution to help reduce the carbon intensity of those products shipped all around the world from right here in Texas. Our collaboration with HEP adds midstream expertise and simplifies commercial terms while enhancing our operational capabilities, making this offering a logical choice for the many blue-chip companies operating in the Port of Corpus Christi today."