ExxonMobil and Nucor Partner to Capture and Store Carbon Emissions in Louisiana
ExxonMobil, the largest U.S. domestic oil and gas company, has announced a partnership with Nucor, a prominent steel-maker, to capture and permanently store carbon emissions from Nucor's direct reduced iron (DRI) plant in Convent, Louisiana. This collaboration marks ExxonMobil's third major carbon capture and storage (CCS) project announced in the last seven months, demonstrating the company's commitment to building a portfolio of such projects along the Texas and Louisiana Gulf Coast.
The agreement with Nucor is part of ExxonMobil's mission to accelerate the world's path to net zero and create a compelling new business. By capturing carbon emissions from Nucor's plant, ExxonMobil aims to address emission challenges at scale and provide solutions for third-party customers. Together with its previous CCS agreements with CF Industries and Linde, ExxonMobil's Low Carbon Solutions business unit will have the capability to transport and store 5 million metric tons per year (MTA) of carbon emissions.
Dan Ammann, President of ExxonMobil Low Carbon Solutions, highlighted the significance of these projects in reducing emissions. He stated, "The emissions captured at the Nucor site will flow into the same infrastructure used for the nearby project with CF Industries. With just three projects across these heavy industries, we are already making an impact equivalent to changing 2 million gas-powered cars to electric vehicles, which is the total number of EVs sold in the United States."
One key advantage of the Nucor and CF Industries project is the utilization of existing infrastructure, such as pipelines, which minimizes the need for additional construction. Ammann explained, "The Nucor facility is geographically close to the CF Industries site, so the required infrastructure will be quite limited." This strategic approach aligns with ExxonMobil's goal of achieving economies of scale and supporting the scaling-up of CCS projects.
The Texas/Louisiana region is proving to be an ideal location for CCS initiatives due to its abundance of underground storage pore space, existing infrastructure, and the availability of expertise necessary for managing such projects. Additionally, the supportive stance of state governments in these regions plays a crucial role in fostering the development of CCS projects.
Addressing criticism about the effectiveness of industrial-based CCS, Ammann emphasized the urgency and scale of the energy transition. He stated, "We need everything, and we need it now, and we need it at large scale. Debating whether it is this or that or the other thing is really the wrong discussion. The real discussion is, where are the projects, when are they going into execution, and what kind of impact are they going to have?" As the largest player in this target-rich environment, ExxonMobil is expected to announce further projects in the future, reinforcing its commitment to sustainable practices and contributing to a greener future.