Stakeholder Midstream achieves EPA approval for CO2 sequestration

By Becky Schultz14 September 2022

EPA approves MRV plan for permanent CO2 sequestration at the Pozo Acido injection well

Independent midstream company Stakeholder Midstream announced it has received approval from the U.S. Environmental Protection Agency (EPA) for its monitoring, reporting and verification (MRV) plan for the permanent sequestration of carbon dioxide (CO2) at its Pozo Acido injection well in the Permian Basin. It marks the first MRV plan approved by the EPA for this purpose within the state of Texas that is not associated with enhanced oil recovery operations.

The approved MRV plan documents how the company will ensure permanent carbon capture and storage (CCS) of CO2 in the Pozo Acido well from natural gas processed and treated at Stakeholder’s Camp Viejo gas plant. Its approval, in conjunction with meeting other statutory requirements, will allow the company and other parties who contract to permanently sequester CO2 in the Pozo Acido injection well to qualify for 45Q tax credits.

According to Stakeholder, the state-of-the-art well is designed to permanently sequester CO2 by injecting greenhouse gas into the Devonian formation more than two miles below the surface and 10000 ft. below the water table. It is currently injecting more than 70000 metric tons per year of CO2, with total annual permitted capacity over 375000 metric tons.

The Pozo Acido injection well is located near the Texas-New Mexico border adjacent to the Kinder Morgan Cortez pipeline, which spans three states and is capable of transporting 1.5 billion cu. ft. of CO2 per day. Also in immediate proximity is the Occidental Petroleum Bravo and Sheep Mountain pipelines, Kinder Morgan Central Basin pipeline and Trinity CO2 pipelines. Their close proximity to Stakeholder’s CCS infrastructure creates opportunity for the company to service third-party carbon sequestration customers in and beyond the Permian Basin.

“Carbon and emissions management is an integral focus and business segment for our company,” said Brett Baker, Stakeholder Midstream chief commercial officer. “We believe that by offering these services to third parties, including other gas processing plants in the Permian region and beyond, we can provide an environmentally responsible solution for CO2 emitters to reduce the carbon intensity of their oil and gas operations and to meet their ESG goals. Our vision is to become one of the leading carbon solutions providers in the United States by helping producers and like-minded midstream companies across multiple basins decarbonize their operations.”

Stakeholder operates two permanent sequestration wells responsible for the secure geologic storage of more than 85000 metric tons per year of CO2, or roughly equivalent to eliminating the carbon emissions of 11,000 U.S. households or removing 18,000 internal combustion vehicles from the road. The company is currently developing the final phases of its carbon capture equipment buildout with plans to install additional facilities in 2023.

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