Exxon expands CO2 storage plans with Texas power deal

illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: ExxonMobil has signed a new agreement with Calpine Corporation to capture and store up to 2 million metric tons of CO₂ annually from Calpine’s Baytown Energy Center in Texas
• This marks Exxon’s sixth carbon capture and storage (CCS) partnership, bringing its total CO₂ under contract to 16 million metric tons per year

🔭 The context: Exxon has significantly scaled up its low-carbon infrastructure, notably acquiring Denbury Inc. in 2023 for $4.9 billion to gain access to the largest CO₂ pipeline network in the U.S.
• The deal with Calpine (see sustainability performance), one of America’s largest power generators, reflects Exxon’s ongoing strategy to diversify beyond fossil fuels and position itself as a leading CCS provider amid growing industrial demand for decarbonization

🌍 Why it matters for the planet: CCS is a critical tool in reducing emissions from hard-to-abate sectors like power generation
• By leveraging existing pipeline infrastructure, Exxon’s expanded storage capacity could help industrial emitters lower their carbon footprint at scale
• Questions remain about the long-term viability and environmental integrity of large-scale CCS without complementary emission reduction efforts

⏭️ What's next: Exxon is expected to continue securing similar agreements as it targets expansion in the Gulf Coast’s CCS hub
• Regulatory scrutiny, infrastructure buildout, and customer alignment will shape deployment timelines
• The Baytown project adds momentum to Texas’ ambitions of becoming a national CCS leader, especially as federal incentives like the Inflation Reduction Act’s 45Q tax credits improve project economics

💬 One quote: “This agreement showcases our ability to partner with industry to help lower emissions and advance carbon capture as a real climate solution,” — Barry Engle, president of Exxon’s Low Carbon Solutions

📈 One stat: ExxonMobil now holds contracts to store 16 million metric tons of CO₂ per year — roughly equivalent to removing over 3 million gasoline-powered cars from the road annually

See on illuminem's Data Hub™ the sustainability performance of ExxonMobil and its peers Calpine, Chevron, Shell, and Occidental Petroleum

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