ExxonMobil Signs New Carbon Capture Deal
HOUSTON — ExxonMobil has signed a carbon capture agreement with Nucor Corporation, one of North America’s largest steel producers.
Under the terms of the agreement ExxonMobil’s Low Carbon Solutions division will capture, transport and store up to 800,000 metric tons per year of CO2 from Nucor’s manufacturing site in Convent, Louisiana.
The site produces direct reduced iron, a raw material used to make high-quality steel products including automobiles, appliances and heavy equipment.
The agreement is the third carbon capture agreement ExxonMobil announced in the past seven months, following previous ones with industrial gas company Linde and CF Industries, maker of agricultural fertilizer.
The multinational energy company said in a press release the new deal also marks a milestone — bringing the total CO2 it has agreed to transport and store for third-party customers to 5 million metric tons per year.
“That’s equivalent to replacing approximately 2 million gasoline-powered cars with electric vehicles, which is roughly equal to the total number of EVs on U.S. roads today,” the release said.
Dan Ammann, president of ExxonMobil Low Carbon Solutions, said in a written statement that the agreement with Nucor is an example of how the energy giant is helping “accelerate the world’s path to net zero and build a compelling new business.”
“Momentum is building as customers recognize our ability to solve emission challenges at scale,” Ammann said.
The Nucor project, expected to start up in 2026, will tie into the same CO2 transportation and storage infrastructure as utilized by ExxonMobil’s CF Industries project, and supports Louisiana’s objective of reaching net-zero CO2 emissions by 2050.
Dan can be reached at [email protected] and at https://twitter.com/DanMcCue
