Oil and CO₂ : Wyoming’s Unlikely Climate Duo

Denbury’s Greencore pipeline ties oil recovery to future carbon storage plans

29 May 2025

A carbon pipeline cutting across Wyoming is drawing attention from policymakers and industry groups for its role in reducing emissions while sustaining oil production.

The 232-mile Greencore pipeline, operated by Texas-based Denbury, transports carbon dioxide captured at the Lost Cabin gas plant to the Bell Creek oil field in Montana. There, the gas is injected into mature wells to stimulate oil recovery. Most of the CO₂ remains underground, effectively sequestered in the process.

While enhanced oil recovery using carbon dioxide is not new, the Greencore project has gained renewed relevance amid growing interest in carbon management strategies. Wyoming lawmakers cited the pipeline in May during policy discussions focused on expanding carbon storage infrastructure.

“This is a stepping stone,” one analyst said at the session. “It supports oil recovery now and can transition to full-scale carbon storage as regulations and markets catch up.”

Federal tax incentives, including credits under Section 45Q, are making such projects more economically viable. Denbury’s model illustrates how carbon capture systems can generate immediate financial returns while helping to build long-term climate infrastructure.

Environmental groups have voiced concerns over the continued link between carbon capture and fossil fuel production. They argue that using CO₂ to extract more oil undermines broader decarbonisation efforts. However, proponents maintain that the storage would occur regardless, and using the process to fund infrastructure now is a pragmatic step.

Greencore has been operating since 2013, but its policy relevance has grown as interest in carbon management accelerates. With Wyoming aiming to position itself as a hub for carbon storage, the pipeline is seen as a test case for integrating industrial emissions, fossil energy and long-term sequestration.

Other states are watching closely. As federal and state governments seek scalable climate solutions, the Wyoming model offers a combined approach that connects today’s energy realities with tomorrow’s emissions targets.