- ExxonMobil (XOM, Financial) and Calpine Corporation partner to capture and store up to 2 million metric tons of CO2 annually.
- The Baytown CCS Project will generate 500 megawatts of low-carbon electricity, powering over 500,000 homes.
- The project is contingent upon supportive government policy, customer agreements, and regulatory permits.
Exxon Mobil Corporation (XOM) has entered into an agreement with Calpine Corporation, the largest U.S. producer of electricity from natural gas, to facilitate the transportation and permanent storage of up to 2 million metric tons of CO2 each year. This crucial move is part of the Baytown Carbon Capture and Storage (CCS) Project, intended to capture emissions from Calpine's Baytown Energy Center, located near Houston.
The collaboration aims to produce approximately 500 megawatts of low-carbon electricity, which is sufficient to power more than 500,000 homes. The CO2 captured from Calpine’s facility will be integrated into ExxonMobil’s extensive CO2 pipeline network, positioned strategically along the U.S. Gulf Coast.
This agreement with Calpine marks ExxonMobil’s sixth CCS customer, increasing the overall CO2 under their contract to about 16 million metric tons per annum. The development of the project is underpinned by robust government policies, successful customer power sales agreements, and the acquisition of necessary regulatory permits.
Caleb Stephenson, Executive Vice President of Calpine, expressed optimism about the collaboration, emphasizing the potential of carbon capture technology as a cost-effective solution to provide reliable power while addressing future energy needs. The project is expected to create significant construction and permanent jobs, enhancing both local and national industrial competitiveness.
