Rayonier and Reliant Partner on Carbon Sequestration Agreement
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Rayonier Inc. has entered into a groundbreaking agreement with Reliant Carbon Capture & Storage, securing underground pore space rights for approximately 104,000 acres in Alabama.
This strategic partnership, announced on December 23, 2024, aims to advance carbon capture and storage (CCS) initiatives in the region.
The agreement allows Reliant, a company specializing in CO2 capture from industrial sources, to utilize Rayonier's land for sequestering carbon dioxide in subsurface geological formations. This move aligns with Rayonier's land-based solutions strategy and positions the company to capitalize on the growing demand for carbon reduction technologies.
Mark McHugh, President & CEO of Rayonier, emphasized the significance of this agreement: "Carbon capture and storage opportunities represent a key pillar of our land-based solutions strategy, and we are encouraged by our progress in securing additional pore space lease agreements."
Reliant is currently finalizing a front-end engineering design report for a power generating station in the area, indicating concrete steps towards implementing the CCS project. Tom McCarthy, CEO of Reliant, highlighted the project's potential impact: "By building this large-scale sequestration hub, coupled with post-combustion carbon capture projects at large-volume emitters, Reliant will provide the key components required to decarbonize heavy industry in this region."
This collaboration represents a significant step in the transition to a low-carbon economy, combining Rayonier's extensive land assets with Reliant's expertise in carbon capture technology. The project's scale suggests substantial storage capacity, likely sufficient for multiple industrial clients.
For Rayonier, a leading timberland real estate investment trust with approximately 2.7 million acres of timberlands across the United States and New Zealand, this agreement marks a strategic expansion of its land-based solutions business. It demonstrates the company's commitment to leveraging its assets for innovative, sustainable purposes while potentially opening new revenue streams in the growing carbon capture market.
