Exxon Mobil has reached a deal to transport and store up to 2 million metric tons of carbon dioxide annually from one of Calpine’s power generation sites in Texas.
Calpine is Exxon’s sixth carbon capture and storage (CCS) customer, and the agreement announced Wednesday brings the oil and gas company’s total CO2 under contract to about 16 million metric tons per year.
Texas-based Exxon has spent billions of dollars to increase its carbon dioxide infrastructure in recent years. Exxon agreed to purchase Denbury for $4.9 billion in 2023, and with it the largest collection of CO2 pipelines in the country. In an earnings call last year, Exxon CEO Darren Woods said the company was also looking into using carbon as a feedstock for products such as carbon fibers, polymer additives and battery materials.
Barry Engle, president of Exxon’s low carbon solutions business, said the Calpine deal highlights how the company can work to deliver lower emissions. Carbon dioxide from Calpine’s Baytown Energy Center near Houston is slated to be sent into Exxon’s pipeline system.
