ExxonMobil Leases ‘Largest’ CO2 Offshore Storage Area in Texas Waters

ExxonMobil Corp. signed the largest offshore CO₂ storage lease in the United States with the Texas General Land Office (GLO) for a 271,000-acre site in Texas’ Gulf of Mexico waters. The site complements ExxonMobil’s under-development onshore CO₂ storage portfolio and contributes further carbon capture and storage (CCS) activity to the U.S. Gulf Coast.

“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 solution that includes capture, transportation, and storage capabilities.”

The terms of the agreement will directly benefit the Texas Permanent School Fund, enhancing education for Texas children while 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 solutions that can help ensure future energy production,” said Dawn Buckingham, Commissioner of Texas GLO. “Energy independence is vital to ensuring our state and country remain economic leaders around the globe. 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 state along with our Texas school children.”

Offshore acreage provides additional storage space for CO₂ emissions, with the Gulf of Mexico playing a key role in meeting net-zero goals. ExxonMobil operates the largest CO₂ pipeline network in the United States, enabling the company to leverage its infrastructure and storage space to deliver an end-to-end solution.

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Earlier this month, Mitsubishi Heavy Industries Compressor International Corp. (MCO-I) successfully delivered an advanced CO2 product compressor package to ExxonMobil’s CCS expansion project in LaBarge, WY. The core equipment, delivered in April 2024, was manufactured and tested at MHI Compressor Corp. (MCO) in Hiroshima, Japan.

MCO-I conducted the packaging work in Pearland, TX, ensuring integration while allowing the end-user to execute final inspections and familiarize themselves with the package locally. Personnel from both MCO and MCO-I were involved in manufacturing, testing, installation, and commissioning support of the compressor package for ExxonMobil’s CCS project.

In June 2024, ExxonMobil partnered with Air Liquide to support its Baytown, TX facility in the production of low-carbon hydrogen and ammonia. The signed agreement enables ExxonMobil to transport the low-carbon hydrogen through Air Liquide’s existing pipeline network. In addition, Air Liquide will construct and operate four large modular air separation units (LMAs) to generate 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen per day for Baytown utilizing low-carbon electricity.

The Baytown hydrogen production facility is a large-scale project, slated to generate 1 billion cubic feet of low-carbon hydrogen per day and more than 1 million tons of ammonia per year. It will also capture more than 98% of CO₂ produced at the site. The partnership with Air Liquide allows ExxonMobil to grow the low-carbon hydrogen market along the Gulf Coast, helping industrial customers to decarbonize operations.