What Trace Carbon Solutions does

Trace Carbon Solutions is the CCS-focused affiliate of Trace Midstream Partners II, LLC, a Houston-based portfolio company of Quantum Capital Group. It develops permanent geologic carbon sequestration assets and supporting midstream infrastructure for North American natural gas producers and industrial CO2 emitters. The company's flagship project is the Evergreen Sequestration Hub, a 20,000-acre site in Calcasieu and Beauregard parishes, Louisiana, with estimated total sequestration capacity of over 250 million metric tons of CO2. A Class VI permit application for two CO2 injection wells was submitted to the Louisiana Department of Energy and Natural Resources in February 2024.

Under the broader Trace Midstream platform, the company operates an integrated natural gas midstream system in the Northern Delaware Basin with over 800 MMcf/d of gathering and transportation capacity, 200+ miles of pipeline, 14 compressor stations, and 125,000+ horsepower of compression. The announced Apollo Gas Plant (250 MMcf/d cryogenic processing, plus 36 miles of gathering pipelines and two compressor stations) extends the platform into gas processing and is targeted for Q4 2027 in-service. Acquired LM Energy Delaware assets added 170 miles of pipeline, 12 compressor stations, and 80,000+ dedicated acres in August 2024.

Trace generates revenue through long-term, fee-based natural gas midstream services with acreage dedications from producer customers (notably Vitruvian Exploration IV with 130,000+ dedicated acres) and plans to layer in recurring, long-term sequestration agreements with industrial emitters under a subscription-style commercial model. The company has been funded with over $420 million in equity commitments from Quantum Capital Group, Climate Investment, and Trace management.

Name

Trace Carbon Solutions

Legal name

Trace Midstream Partners II, LLC

Website

https://tracemidstream.com

Company type

Private

Founded year

2022

Operating status

Operating

Headcount range

11–50 employees

Short description

Trace Carbon Solutions develops permanent geologic CO2 sequestration assets (Evergreen Hub, 250M+ tonnes capacity, Louisiana) and operates an integrated Northern Delaware Basin natural gas midstream platform (800+ MMcf/d capacity, 200+ miles of pipeline) for natural gas producers and industrial CO2 emitters.

Ownership category

akta.pro rank

Product category

Carbon Capture and Sequestration Services

NAICS

Pipeline Transportation of Natural Gas (486210)

SIC

Natural Gas Transmission (4922), Pipe Lines (No Natural Gas) (4610)

akta.pro primary industry

Carbon Removal Project Development, Financing & Offtake (Developers, Aggregators, Buyers Clubs) (EUABAFAL)

akta.pro secondary industries

CO2 Gathering & Collection Pipelines (Capture-to-Hub Networks) (TLAGAFAB), CO2 Gathering & Compression (for EOR/CCUS feed) (EUALACAJ), CO2 Pipeline Development, Engineering & Construction (EPC) (TLAGAFAJ)

Keywords

• Carbon capture sequestration
• Natural gas midstream
• CO2 injection wells
• Gas gathering processing
• Decarbonization infrastructure

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Supply Chain, Personnel, Technology or R&D, Operations, Marketing or Sales

Revenue model

1. Natural Gas Midstream Services: Fee-based natural gas gathering, compression, transportation, and processing services under long-term contracts with natural gas producers. Revenue generated through fixed-fee arrangements with acreage dedications from producer customers.
2. Carbon Capture and Sequestration Services: CO2 capture, transportation, and permanent geologic sequestration services for industrial emitters. Revenue model based on long-term sequestration agreements with industrial carbon emitters seeking decarbonization solutions.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Trace Carbon Solutions develops carbon capture and sequestration (CCS) infrastructure for industrial CO2 emitters and operates an integrated natural gas midstream platform. The company delivers CO2 capture, transportation, and permanent geologic sequestration services through the Evergreen Sequestration Hub in Louisiana, alongside natural gas gathering, compression, transportation, and processing services for producers in the Northern Delaware Basin under long-term fee-based contracts.

Differentiator

Problem solved

Functional benefit

Products and services

• Evergreen Sequestration Hub Carbon capture and sequestration site utilizing underground geologic formations for permanent CO2 storage, with Class VI injection wells and approximately 20,000 acres in Calcasieu and Beauregard parishes, Louisiana. Designed for industrial CO2 emitters in oil & gas, cement, and steel sectors seeking decarbonization pathways.
• Apollo Gas Plant A 250 MMcf/d cryogenic natural gas processing facility in Eddy County, New Mexico, supported by 36 miles of new gathering pipelines and two new compressor stations. Provides Northern Delaware Basin producers with integrated low-pressure gathering, compression, transportation, and processing services under long-term contracts. Expected to be in service in Q4 2027.
• Northern Delaware Basin Gas Gathering System High- and low-pressure gas pipeline system with compression, dehydration, condensate handling, and vapor recovery capabilities spanning approximately 170 miles of pipeline and 12 compressor stations with 650 MMcf/d capacity, supporting over 80,000 dedicated acres from multiple producers under long-term fixed-fee contracts.

Quantifiable outcome

• 250 million metric tons of CO2 sequestration capacity at Evergreen Hub
• +2 more outcomes

Named customers2 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Four partnerships are on record, tiered core and minor.

• LM Energy Delaware, LLCcoreStrategic or Co-development Partner · 6 August 2024Acquisition of natural gas gathering and transportation assets in Northern Delaware Basin from LM Energy (portfolio company of Old Ironsides Energy). System includes 170 miles of pipeline, 12 compressor stations, and 650 MMcf/d capacity with 80,000+ dedicated acres.
• Molpus Woodlands GroupcoreStrategic or Co-development Partner · 28 September 2023Timber investment management organization providing approximately 20,000 acres in Calcasieu and Beauregard parishes, Louisiana for Evergreen Sequestration Hub development. Molpus continues to manage aboveground acreage as sustainably managed working forest while Trace develops subsurface CO2 sequestration. Partnership enables dual-use of land resources.
• WilliamsminorStrategic or Co-development PartnerWilliams acquired Trace's Haynesville gathering and processing assets in April 2022 for $950 million. Trace customer Rockcliff Energy committed to long-term capacity in support of Williams' Louisiana Energy Gateway project. Williams and Quantum formed joint venture for LEG project.
• David Dell'OssocoreOthersAppointed as Chief Operating Officer of Trace Midstream II and Trace Carbon Solutions in September 2022. Brings extensive subsurface expertise and proven track record in development and operations of large-scale upstream and midstream assets. Previously COO at Parsley Energy and SVP at Southwestern Energy.

Scale indicators10 records

Recent moves7 records

Expansion highlights6 records

Broad incumbents

• Energy Transfer: Major diversified midstream operator that acquired Trace's Mid-Continent assets for $485 million in 2022. Operates comparable gas gathering, processing, and NGL takeaway infrastructure across U.S. basins and is increasingly active on carbon-related infrastructure.
• Enterprise Products Partners: Diversified midstream MLP with integrated natural gas, NGL, and petrochemical infrastructure across U.S. basins including the Permian/Delaware. Provides public-market scale comparison for fee-based midstream platforms like Trace's Northern Delaware system.
• Kinder Morgan: Largest North American natural gas pipeline operator with extensive CO2-EOR/CCUS history through its former Cortez pipeline and Bravo dome assets. Comparable operating profile in long-haul CO2 transport and natural gas midstream infrastructure.
• Targa Resources: Permian-focused natural gas and NGL midstream operator with leading gathering and processing positions in the Delaware Basin. Most direct midstream competitor in Trace's core Northern Delaware footprint and a useful public-market benchmark for valuation.
• Occidental Petroleum: Parent of 1PointFive and traditional Permian-focused E&P with a major low-carbon ventures arm including Stratos DAC and CCS projects. Combined E&P-plus-CCS platform breadth makes it a useful scaled benchmark for Trace's integrated gas-and-CCS strategy.
• Williams Companies: Large-cap natural gas midstream operator and prior buyer of Trace's Haynesville assets for $950 million. Comparable infrastructure platform across gathering, processing, and long-haul gas transmission with increasingly active positions in low-carbon/CCS services.

Direct peers

• Denbury Resources: Pioneer in CO2-EOR and dedicated CO2 pipeline infrastructure now part of ExxonMobil's Low Carbon Solutions business. Closest historical analog to Trace's CCS-plus-midstream model, with comparable subsurface CO2 storage expertise and CO2 pipeline operations.
• Talos Energy: Independent E&P with a CCS development platform anchored by the Bayou Bend and Bayou Coast projects along the U.S. Gulf Coast. Directly comparable to Trace Carbon Solutions' Gulf Coast-focused Evergreen Sequestration Hub and shared customer base of industrial emitters.
• 1PointFive: Occidental subsidiary developing the Stratos direct air capture and sequestration hub in Texas. Operates the largest announced DAC-plus-storage CCS project in North America and serves as the most directly comparable scale CCS developer to Trace's Evergreen platform.

Emerging players

• CarbonCapture Inc. Emerging direct air capture technology and project developer with announced U.S. mega-project partnerships. Adjacent comparable to the CCS project development side of Trace's business, particularly with respect to permanent geologic storage contracting.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Subsidiaries1 record

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Trace Carbon Solutions