A Texas offshore oil and gas operator is partnering with a Louisiana pipeline company and a Spanish energy firm to develop a Gulf of Mexico carbon capture hub near Grand Isle.

Carbon-Zero US LLC of Dallas has applied for up to $12 million in U.S. Department of Energy funds to develop a pilot sequestration hub in offshore storage fields about 20 miles from Grand Isle, according to officials from Cox Operating LLC, the Dallas operator that owns some of the storage fields. The other storage fields are owned by Crescent Midstream, a pipeline distribution group based in Gray that will help transport carbon dioxide to the Grand Isle hub.