It’s been two months since Gov. Jeff Landry ordered a moratorium on new applications for carbon capture injection wells in Louisiana, a move that drew pushback from top industry lobbying groups as well as local economic analysts and decision-makers.
Those concerned argue the moratorium could put billions of dollars in announced but not-yet-finalized industrial projects at risk, as many of those projects depend on CCS infrastructure to move forward. They say the pause could shake investor confidence and spur companies to look elsewhere—namely, to Texas.
The high economic stakes beg the question: When, if ever, will the moratorium be lifted?
Since Landry issued his executive order, four individuals keeping a finger on the pulse of Louisiana’s energy economy—economist Loren Scott; Greg Upton, executive director of LSU’s Center for Energy Studies; Patrick Robinson, the Louisiana Association of Business and Industry’s vice president of government relations; and Lori Melancon, president and CEO of the Greater Baton Rouge Economic Partnership—have all told Daily Report they’ve received no word on when the moratorium might be lifted. The governor’s office and Louisiana Economic Development have not responded to multiple requests for comment.
According to Scott, Louisiana is “always in competition” with Texas, a state that “already has so much going for them over us already.” The moratorium tilts the playing field even further in Texas’ favor, he says, as does Texas’ newly granted Class VI primacy. Class VI primacy refers to a state’s authority to permit and regulate Class VI carbon capture injection wells itself rather than having to rely on the federal government to do so for it. Louisiana was granted Class VI primacy in 2023.
“There are a significant number of major projects—we’re talking about tens of millions, hundreds of millions of dollars—that are very closely tied to the CCS issue,” Scott says. “There’s a lot of jobs and there’s a lot of tax revenue on the line.”
Upton, meanwhile, says no other state has placed a moratorium of this ilk to the best of his knowledge. It’s worth noting, however, that Louisiana is one of only six states to have obtained Class VI primacy.
“Other states couldn’t do something like this if they don’t have primacy,” Upton says. “But no, I’m not aware of any other state that’s done this before.”
LABI is one of the groups that expressed concern over the moratorium, joining other big names like the American Petroleum Institute and the Louisiana Mid-Continent Oil and Gas Association. While Robinson is encouraged by the fact that Landry has “said a lot of good things about CCS” in recent months, he says he has “no idea” when the moratorium might be lifted and that he’s not directly engaged with the Landry administration on the issue.
“From LABI’s perspective, I think the governor is aware that we support carbon capture,” Robinson says. “I think we’ve made that apparent over the past several years as carbon capture bills have come forward. But I’m not involved in any conversations with the governor’s office particularly on the moratorium.”
Melancon, however, says her organization—formerly the Baton Rouge Area Chamber—is actively encouraging the Landry administration to lift the moratorium and is maintaining open lines of communication with elected officials, industry players and local stakeholders to understand the implications of the measure and to ensure that the Capital Region’s economic priorities are well represented in discussions at the governor’s office.
According to Melancon, the stakes are exceptionally high in the Greater Baton Rouge area. She calls CCS a “generational opportunity for economic growth” in the region.
“Our current project pipeline includes 43 major investment opportunities totaling roughly $60 billion,” Melancon says, noting that the almost 50% of those projects that rely on CCS represent more than 80% of the pipeline’s capital investment and two-thirds of the pipeline’s direct jobs. “The overwhelming majority of new economic growth, industrial retention and future hiring in this region is tied to CCS.”
The Partnership is particularly concerned about the influence of “out-of-state special interests pouring millions into misinformation and litigation targeting Louisiana’s energy infrastructure,” Melancon adds. She says such campaigns are misleading residents and stakeholders and signaling instability for companies looking to invest in Louisiana.
“At this time, we have not received any indication from the Landry administration about when the moratorium may be lifted,” Melancon says.
