David Blackmon is a Texas-based public policy analyst/consultant.
ExxonMobilXOM -0.1%, the largest U.S. domestic oil and gas company, and big steelmaker NucorNUE announced an agreement Thursday in which Exxon will capture carbon emissions from Nucor’s direct reduced iron (DRI) plant in Convent, Louisiana and permanently store it in underground reservoirs.
For ExxonMobil, the deal is its third major carbon capture and storage (CCS) project announced in the last seven months as it advances its strategy for growing a portfolio of such projects along the Texas and Louisiana Gulf Coast.
“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,” Dan Ammann, president of ExxonMobil Low Carbon Solutions (LCS), said in the company’s release. “Momentum is building as customers recognize our ability to solve emission challenges at scale.”
Combined with Exxon’s previously announced CCS agreements with CF Industries and Linde, the deal with Nucor will, when operational, enable the company’s Low Carbon Solutions business unit to transport and store 5 million metric tons per year (MTA) for third-party customers.