Mitsui Enters into Participation Agreement for U.S. Carbon Sequestration Project

May 26, 2022

Willkie advised Mitsui in connection with the leading-edge carbon capture project with Sempra Infrastructure, TotalEnergies, and Mitsubishi Corporation.

On May 24, Willkie client Mitsui & Co., Ltd. announced that it has entered into a participation agreement with Sempra Infrastructure, TotalEnergies and Mitsubishi Corporation for the development of the Hackberry Carbon Sequestration (HCS) project in southwest Louisiana.

The project aims to capture, transport, and sequestrate carbon dioxide primarily sourced from the Cameron liquefied natural gas (LNG) liquefaction facility that the companies developed together. HCS is expected to be among the first North American carbon capture facilities designed to receive and store carbon dioxide from multiple sources.

HCS previously filed an application for a Class VI injection well permit and for permanent storage of up to 2 million tons per annum of carbon dioxide with the U.S. Environmental Protection Agency.

HCS is wholly owned by Sempra Infrastructure, and the participation agreement provides the basis for Mitsui and the other parties to potentially enter a joint venture for the HCS project.

Mitsui & Co is a diversified global trading, investment, and service enterprise headquartered in Tokyo.

The Willkie team was led by partner Archie Fallon and included partner Robert Jacobson and counsel Jason Nasra.