Gov. Jeff Landry halts new carbon capture applications in Louisiana

BATON ROUGE, La. (Louisiana First) — Gov. Jeff Landry declared a moratorium on new carbon capture injection wells applications in Louisiana on Wednesday.

The Louisiana Department of Conservation and Energy is ordered to reevaluate the status of Class VI permit applications over the next 45 days. Landry explained that the order is to give residents and local officials a “clear roadmap” to ensure that applications for proposed projects follow state rules for carbon injection and carbon dioxide pipelines.

Landry said it is necessary that the department can take a methodical approach to application review and permitting, with safety for people and the environment in mind.

Click here to read more about Landry’s executive order.

Industry groups release statements

Statement from the Louisiana Association of Business and Industry.

“Louisiana’s energy sector is the envy of the nation and the world. The expertise and talent of our workforce, combined with the state’s abundant natural resources, make the state a global destination for energy investment and innovation. LABI’s commitment to ensuring that Louisiana remains a top destination for investment, technological advancement and job creation is ironclad.

“While this appears to be a shared goal of the Landry administration, today’s executive
order on carbon capture and sequestration sends the wrong message. The order risks
ceding Louisiana’s competitive advantage to neighboring states eager to move forward with CCS investments.

“Carbon capture and sequestration is a key piece to growing and retaining the high-wage energy, industrial and manufacturing jobs that sustain Louisiana families, while also ensuring the long-term viability of our state’s oil, gas and petrochemical industries.

“Louisiana has already secured billions of dollars in CCS-related investments from
companies committed to delivering products and energy safely and efficiently with a lower carbon footprint. These projects generate millions in local tax revenue, supporting infrastructure improvements, school upgrades and economic development in communities.

“The momentum Louisiana has built is no accident. It is the direct result of securing state primacy and leveraging our unique geology, world-class energy infrastructure and highly skilled workforce. Together, these advantages have positioned Louisiana as a global leader in the energy marketplace. By injecting uncertainty and regulatory hurdles into this process, we stand to undo all the progress that state leaders have touted for months.

“We cannot yield our position to states like Texas that stand ready to capture these same opportunities. CCS represents a chance to strengthen Louisiana’s energy sector and make us the energy giant of the future we know we can be.

“LABI stands ready to work with the Landry administration and President Trump to ensure Louisiana secures our energy future, creating good-paying jobs and thriving local communities for generations to come. This shared vision can only be realized by building on our existing resources and embracing innovative technologies like carbon capture and sequestration, sending a clear message: Louisiana is open for business.”

Statement from the Louisiana Chemical Association.

“The Louisiana Chemical Association appreciates Governor Landry’s focus on public safety, environmental stewardship, and economic growth. We share his commitment to responsible industrial development and community engagement, and we value the Administration’s broader efforts to establish Louisiana as a premier place for business investments. To that end, our industry has already committed over $60 billion to projects that depend on carbon capture and storage. 

That is why we are concerned that a conditional moratorium on new Class VI permit applications, as announced today, sends the wrong message to the market at a pivotal moment for Louisiana’s economy. Carbon capture and storage (CCS) is a critical part of maintaining and growing the manufacturing industry in our state. A pause on applications, regardless of the reasoning, signals uncertainty for projects that enable lower-emissions production, support thousands of high-wage jobs, and encourage future reinvestment.

Louisiana earned federal approval to run its own Class VI program so that permitting could be rigorous, predictable, and efficient here at home. That hard-won primacy, and the state’s recent issuance of its first Class VI permit, demonstrate that Louisiana can safely develop these projects in a way that protects communities and natural resources while continuing to encourage industrial investment in the state. A moratorium undermines that predictability at the very time companies are making multi-billion-dollar, multi-decade siting decisions.

LCA remains committed to working with the Governor, state agencies, and local officials to address concerns and deliver the environmental and economic benefits made possible by CCS projects in the state. Louisiana should proudly lead the nation in safe, responsible industrial decarbonization rather than signaling hesitation that allows other states to seize this opportunity.”

Statement from the Louisiana Oil and Gas Association.

“We respectfully disagree with the Governor‘s decision to halt the review of any new CCUS applications.

“We are thankful that the Governor didn’t cancel existing CCUS projects, which will continue to prove how safe this technology actually is, and we encourage industry to continue moving forward with the hope that the Governor will lift this moratorium sooner rather than later.

“For 75+ years Louisiana’s regulatory arm has safely authorized and governed injection wells. AND for 40+ years through Enhanced Oil Recovery, the Department has safely regulated the injection of CO₂. In fact, since 2010, over 47 billion metric tons of CO₂ have been safely injected and ultimately stored in Louisiana formations.

“Carbon capture is a proven tool that will bring significant economic development and new opportunities to our state and our country, and we remain committed to advancing these benefits for Louisiana.”

Statement from American Petroleum Institute Gulf Coast Region Director Gifford Briggs.

“We share the governor’s goal of addressing the backlog of CCS project applications, but an indefinite moratorium undermines Louisiana’s energy leadership and sets a precedent that could discourage development and innovation across the Gulf Coast and the nation. This executive order creates uncertainty that could delay projects, and send jobs and opportunities elsewhere. Now, Louisiana’s leadership role in American energy security is in jeopardy.” 

Latest News