Earlier this year Kinder Morgan’s Energy Transitions Ventures (ETV) group secured a pore space lease agreement with TGS Cedar Port Partners, LP, encompassing approximately 10,800 acres near the Houston Ship Channel. This partnership marks a significant milestone in Kinder Morgan's efforts to develop carbon capture sequestration solutions.

The lease grants Kinder Morgan exclusive rights to utilize the pore space beneath TGS Cedar Port Partners' industrial park. The site boasts a remarkable CO2 storage capacity of 300 million tonnes, with plans to accommodate up to four wells capable of sequestering 1.5 million tonnes of emissions annually per well. This configuration positions the site to handle a total of 6 million tons of CO2 per year, making it a foundational carbon management asset for Kinder Morgan.

The Cedar Port site offers unparalleled logistical benefits for Kinder Morgan. Its proximity to the Houston Ship Channel minimizes transportation costs and enhances operational efficiency, making it an ideal hub for offering cost-effective emissions sequestration solutions to nearby industrial facilities.

“We believe the Kinder Morgan Cedar Port Sequestration site is geographically advantaged compared to all other known sequestration sites in the Houston area given its proximity to the Houston Ship Channel and area emissions,” said KMI ETV Business Development Director Seth Wright. “This advantage  positions us to offer the most cost-efficient emissions sequestration solution to our customers."

In tandem with global efforts to mitigate climate change, the U.S. government has enhanced the 45Q tax credit, incentivizing companies like Kinder Morgan to engage in CO2 sequestration. Under this program, companies receive $85 per tonne of CO2 permanently sequestered, further encouraging industrial decarbonization initiatives.

By capitalizing on enhanced tax incentives and leveraging strategic partnerships, Kinder Morgan is poised to lead the charge in carbon management solutions. This initiative not only aligns with global decarbonization goals but also highlights Kinder Morgan's commitment to innovation and sustainability in the energy sector. As regulatory landscapes evolve and environmental consciousness grows, initiatives like these will play a crucial role in shaping the future of energy production and consumption.