Latest Tennyson report16 Jan 2024 15:12
TENNYSON Morning news – Block Energy – CCS study highlights new opportunities
Tennyson Securities, Energy Research
16 Jan 2024
Block Energy (BLOE LN) announced the addition of a potential new string to its bow this morning, with the completion of a carbon capture and storage study covering some of the company’s existing acreage in Georgia. The study concluded that the acreage has significant potential, with the reservoir storage potential amongst the highest in Europe. This is particularly of interest given the nearby industries, which include hydrogen, fertiliser, stell and refined petroleum products, will be starting to look for opportunities to offset emissions as legislation becomes tighter with regards to net zero. The headlines from the study suggest that Block’s reservoir could store 256 million metric tonnes, equivalent to offsetting emissions from 55 million cars. Furthermore, the reservoir is rich in particular minerals (Zeolites) which enhance the potential for successful and sustainable CCS, and is within a good temperature and pressure window for carbonation. While we don’t expect Block to shift focus away from its highly prospective oil and gas opportunities, this CCS study shows that there are also other potential commercial opportunities alongside the core E&P business, which if monetised could add substantial value for shareholders