(Bloomberg) -- Chevron Corp. is partnering with offshore oil producer Talos Energy Inc. to develop a project that would store carbon dioxide beneath the Gulf of Mexico just off the Texas coast.
Chevron signed a memorandum of understanding with Talos and Carbonvert Inc. to take a 50% stake in the Bayou Bend carbon capture hub, it said Tuesday in a statement. The project would take carbon produced from industrial facilities near Beaumont and Port Arthur and sequester them in rock formations beneath the ocean.
The Talos and Carbonvert joint venture was awarded the first and only offshore lease in the U.S. dedicated to carbon storage last year. The project could lock away as much as 275 million metric tons of emissions, the companies estimate.
Under the agreement with Chevron, Carbonvert would hold a 25% stake, Talos would also hold 25% and remain the project's operator.
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