Exxon Mobil’s Historic Offshore Carbon Dioxide Storage Lease: A Major Step for CCS in the US
Exxon Mobil Corporation (NYSE: XOM) has secured the largest offshore carbon dioxide (CO2) storage lease in US history. The Texas General Land Office (GLO) granted ExxonMobil a lease that encompasses approximately 271 068 acres of submerged state land off the coasts of Jefferson, Chambers, and Galveston Counties.
As part of the agreement, ExxonMobil will inject carbon dioxide into geologically secure formations located one to two miles beneath the seabed of the Gulf of Mexico. This significant milestone in Carbon Capture and Sequestration (CCS) efforts represents the most extensive CCS transportation and storage lease not just in Texas, but across the entire United States. The deal is anticipated to have substantial implications, benefiting both environmental initiatives and public education in Texas, while underscoring the Gulf’s considerable potential for CO2 storage, which is essential for achieving net-zero emissions goals.
Texas Land Commissioner Dawn Buckingham expressed pride in partnering with ExxonMobil to utilize state land for innovative energy solutions, emphasizing that energy independence is crucial for maintaining the state’s and country’s economic leadership globally.
The agreement is expected to generate significant revenue for the Texas Permanent School Fund (PSF), providing millions in funding for Texas public schools through exceptional investment returns. Dan Ammann, president of ExxonMobil Low Carbon Solutions, noted that with a growing list of customers ready to deploy CCS, the company aims to drive substantial emissions reductions along the Gulf Coast through a comprehensive solution that includes capture, transportation, and storage, reinforcing ExxonMobil’s leadership in this field.
This landmark deal positions ExxonMobil at the forefront of CCS technology implementation in the US. The company already operates the largest CO2 pipeline network in the country and is poised to utilize its extensive infrastructure to offer a complete solution for carbon capture and storage.