Largest US CO2 offshore storage site comes into ExxonMobil’s hands

U.S. energy giant ExxonMobil has secured access to over 271,000 acres of offshore CO2 storage in Texas state waters, said to be the largest of its kind in the U.S., through a lease with the Texas General Land Office (GLO).

This is said to add significant storage potential to ExxonMobil’s carbon capture and storage (CCS) portfolio, including the onshore CO2 storage the company is developing, complementing a robust network of pipeline and storage capabilities throughout the Gulf Coast region.

“This is yet another sign of our commitment to CCS and the strides we’ve been able to make,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “With our growing roster of customers ready to deploy CCS, we’ll be driving substantial emissions reductions along the Gulf Coast through a comprehensive solution that includes capture, transportation, and storage-capabilities that make us a clear leader.”

The terms of the agreement will directly benefit the Texas Permanent School Fund, enhancing education for Texas children, while also reducing emissions and promoting community development in nearby areas.

“As the steward of 13 million acres of energy-rich state land, I am proud to partner with ExxonMobil in utilizing state land for innovative solutions that can help ensure future energy production. Energy independence is vital to ensuring our state and country remain economic leaders around the globe,” said Commissioner Buckingham.

“As a mom, I have long said that educating our children is the most important thing we do, and I am thrilled that the revenue from this lease will go toward benefiting our great state along with our Texas school children.”

ExxonMobil, who said it owned and operated the largest CO2 pipeline network in the U.S., in 2021 announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels.

The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity, a 40-50% reduction in greenhouse gas intensity of upstream operations, a 70-80% reduction in corporate-wide methane intensity, and a 60-70% reduction in corporate-wide flaring intensity, with the aim to reach net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050.

In terms of other recent news coming from the U.S. company, it was reported yesterday, October 10, that ExxonMobil, in a consortium with Helleniq Energy, began the second phase of seismic research at a gas exploration block offshore the Greek island Crete, set to bring the partners toward the final decision for exploration drilling.

This second phase will take three years for the acquisition and processing of 3D seismic data.