ExxonMobil Inks New Carbon Capture Agreement
HOUSTON — ExxonMobil has signed a carbon capture and storage agreement with the Nucor Corporation that will see the energy giant capture, transport and store up to 800,000 metric tons of CO2 a year from a manufacturing site in Convent, Louisiana.
Nucor’s manufacturing facility in Convent produces “direct reduced iron,” a raw material used to make high-quality steel products including automobiles, appliances and heavy equipment.
The agreement between the two firms is the third carbon capture tie-up ExxonMobil has announced in the past seven months, the previous two being with industrial gas company Linde and CF Industries, a maker of agricultural fertilizer.
The newly announced deal also marks a milestone — bringing the total CO2 ExxonMobil agreed to transport and store for third-party customers up 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.
“Our agreement with Nucor is the latest example of how we’re delivering on our mission to help accelerate the world’s path to net zero and build a compelling new business,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions, in a written statement.
“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 our CF Industries project, and supports Louisiana’s objective of reaching net-zero CO2 emissions by 2050.”