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Louisiana Pauses New Carbon Capture Permits, Orders 45-Day Review of Backlog

Industry groups warn the pause injects uncertainty that could push carbon storage investments to other Gulf Coast states.

Overview

  • Gov. Jeff Landry issued an executive order imposing a moratorium on approvals for new Class VI CO₂ injection wells and directed a 45-day reassessment of pending applications.
  • The state also halted review of applications submitted after the order, while existing applications move into the reevaluation process and previously issued permits remain in place.
  • Regulators named six projects for priority review, including Capio Sherburne in Pointe Coupee Parish and Gulf Coast Sequestration’s Goose Lake and Minerva sites in Calcasieu and Cameron parishes.
  • Officials report roughly 33 applications in the pipeline, each requiring about 2,000 hours of technical review, with a goal of completing reviews within two years of submission.
  • Landry framed the pause as a step to provide a clearer permitting roadmap and stronger local engagement, as industry groups cited risk to jobs and investment, pointing to figures of up to 17,000 jobs and about $76 billion tied to announced CCS projects.