ExxonMobil Corporation has signed the US’s largest offshore carbon dioxide (CO2) storage lease in Texas, strengthening its foothold in the carbon capture and storage (CCS) market.
The oil and gas firm signed the deal with the Texas General Land Office (GLO) for the 271,000-acre site.
Under the terms of the agreement, ExxonMobil will have the right to inject CO2 into geologically secure strata located approximately one to two miles below the surface of the Gulf of Mexico.
Dan Ammann, President of ExxonMobil Low Carbon Solution, said the contract represents the company’s commitment to CCS.
“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.”
The 2022 change to 45Q provides up to $85 per tonne of CO2 permanently stored and $60 per tonne of CO2 used for enhanced oil recovery or other industrial uses of CO2, provided emissions reductions can be clearly demonstrated.
Read more: CO2 Solutions Coalition wants ta shake-up CO2 policy in the US
The terms of the agreement will benefit the Texas Permanent School Fund, enhancing education for Texas children while reducing emissions and promoting community development.
Texas Land Commissioner Buckingham, said he is proud to partner with ExxonMobil in utilising state land for solutions that can help sure future energy production.
He continued, “Energy independence is vital to ensuring our state and country remain economic leaders around the globe.”
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