Weyerhaeuser (WY) Partners With Lapis for Carbon Sequestration

Core Viewpoint - Weyerhaeuser Company has entered into a two-year exclusive agreement with Lapis Energy LP for subsurface carbon dioxide sequestration in multiple states, which is expected to enhance its climate solutions portfolio and carbon capture capabilities [1][2]. Group 1: Agreement Details - The agreement allows Lapis Energy to assess the carbon sequestration potential of five sites covering 187,500 acres of subsurface rights owned by Weyerhaeuser [1]. - Following technical and commercial evaluations, Lapis will work towards full-scale development agreements and the necessary permits for permanent carbon dioxide sequestration sites [1]. Group 2: Business Outlook - Weyerhaeuser is positioned to benefit from its partnerships with high-quality developers in renewable energy and carbon capture, aligning with global climate change initiatives aimed at achieving net-zero emissions by 2040 [3]. - The company anticipates significant progress on projects with Oxy Low Carbon Ventures and Exxon, expected to be operational by late 2025 or 2026, and aims to grow its Natural Climate Solutions (NCS) business to $100 million in EBITDA by the end of 2025 [3]. Group 3: Market Performance - Weyerhaeuser's shares have increased by 3.8% over the past three months, underperforming the Zacks Building Products - Wood industry's growth of 13% [4]. - Despite this, the improving new-home market and high demand for carbon/ESG-related projects are expected to support the company's growth in the near future [4].