Clean Hydrogen Works (CHW), a developer of low-carbon ammonia projects, has launched legal action against ExxonMobil, accusing the energy major of abusing its control over critical carbon dioxide transport infrastructure to squeeze out competition along the US Gulf Coast.
The lawsuit, filed in a Texas business court, centers on Exxon’s ownership of Denbury Carbon Solutions, acquired in 2023 for $4.9 billion.
Prior to the acquisition, CHW had secured access to Denbury’s nearly 620-mile CO2 pipeline network, which is a key component of its Ascension Clean Energy blue ammonia project in Louisiana. According to court filings, that access was later revoked, undermining project financing, customer agreements and construction timelines.
CHW claims Denbury had previously committed to building a dedicated pipeline spur linking the Ascension site to the main trunkline and had invested $20 million into the project. In early 2025, however, Denbury allegedly terminated contracts, accused CHW of delays and demanded repayment of its investment – a move the startup says only occurred after Exxon assumed control.
Pipeline Control Becomes Competitive Flashpoint
The complaint argues that replacing Denbury’s infrastructure would require entirely new transport and storage arrangements at vastly higher cost. CHW estimates that alternative solutions could exceed $1 billion and introduce years of delays, effectively putting the project on hold.
At the same time, the company alleges Exxon has selectively granted pipeline access to other players. CHW points to CF Industries’ nearby Donaldsonville blue ammonia project, which continues to use Denbury’s network, while Exxon’s own Baytown hydrogen and ammonia complex has been paused due to weak near-term demand.
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According to CHW, this uneven treatment reflects an effort by Exxon to consolidate influence over the emerging blue ammonia market by controlling access to CO2 transport and storage.
Legal filings describe Denbury’s pipeline network as the only operational large-scale CO2 corridor in the region, giving Exxon effective gatekeeper status for projects seeking to meet carbon capture requirements.
CHW’s legal counsel said evidence gathered during the case points to coordinated actions designed to disadvantage independent developers.
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