TotalEnergies and Houston, Texas-based energy exploration and production company Talos Energy announced today the acquisition by TotalEnergies of Talos’ carbon capture and storage (CCS) business, Talos Low Carbon Solutions, for a total transaction value of $148 million.

TotalEnergies has set a climate goal to achieve net zero emissions by 2050, and the company said that its focus is first to avoid emissions, and then to reduce them asset by asset, implementing the best available technologies, and to develop industrial projects for carbon storage to address residual emissions. The company has set a goal to develop CO2 storage capacity of more than 10 Mt per year from 2030, for its own facilities and its customers.

Among the assets acquired in the transaction is Talos’ stake in Bayou Bend CCS, a carbon transportation and storage solution for industrial emitters located in the Houston Ship Channel and Beaumont – Port Arthur region, located close to TotalEnergies’ assets in the region, and with capacity to store several hundred million tons of CO2.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, said:

“TotalEnergies is pleased to enter the Bayou Bend project through the acquisition of Talos Low Carbon Solutions. Ideally located close to our Port Arthur refinery and our petrochemicals assets in La Porte, this project will be instrumental for the reduction of direct emissions from our US operations. This transaction gives momentum to the decarbonization of hard-to-abate US emissions and marks a milestone on our journey to get to Net Zero by 2050, together with society.”

Following the transaction, TotalEnergies will own a 25% share in the Bayou Bend project, alongside Chevron at 50% and Equinor at 25%. Talos Low Carbon Solutions also includes 2 other projects along the U.S. Gulf Coast, including Harvest Bend CCS, near the New Orleans/Baton Rouge, Louisiana industrial region and Coastal Bend CCS, near the Corpus Christi, Texas region. TotalEnergies said that it aims to divest the latter 2 projects following the close of the acquisition, as they are farther away from the company’s assets.

Talos President and Chief Executive Officer Timothy S. Duncan said:

“Since TLCS’s inception, we have successfully applied our energy expertise as an early mover aimed at developing decarbonization solutions along the U.S. Gulf Coast. Strong market interest during our capital raise provided the strategic option to fully monetize the business to TotalEnergies, an established global leader in CCS development.”