This week, ExxonMobil finalized its fourth carbon capture and storage (CCS) agreement, this time with ammonia producer CF Industries.
As part of the agreement, ExxonMobil will capture and store 500,000 tons of carbon dioxide from a CF Industries facility in Mississippi, starting in 2028. This deal will enable CF Industries to cut emissions at the site by 50%, according to ExxonMobil.
The contract marks ExxonMobil’s fourth CCS deal and its second collaboration with CF Industries. It will increase ExxonMobil’s total annual carbon capture and storage capacity to 5.5 million tons.
ExxonMobil noted that this amount is equivalent to removing around 2 million gasoline-powered cars from the roads, surpassing the total number of electric vehicles sold in the U.S. in 2023.
ExxonMobil’s largest investment in carbon capture occurred last year with the $5 billion acquisition of Denbury Resources, a company that owns a pipeline network for transporting carbon dioxide.
In addition to this acquisition, ExxonMobil has signed three other CCS agreements: one with CF Industries, another with industrial gas producers Linde, and a third with steelmaker Nucor. Earlier this year, ExxonMobil also announced a partnership with Shell to develop CCS solutions for Singapore.
Carbon capture and storage is increasingly seen as a crucial strategy for oil producers aiming to reduce their carbon footprints or assist others in doing so. However, significant investment is required to meet net-zero goals.
Wood Mackenzie projected earlier this year that CCS investment could reach nearly $200 billion by 2034. This would establish a capture capacity of 440 million tons annually and a storage capacity of 664 million tons annually. Half of this investment would be directed towards expanding capture capabilities, with the remainder split between CO2 transportation and storage.