ExxonMobil has signed a deal with Calpine Corporation to transport and permanently store up to 2 million metric tons of CO2 annually from Calpine’s Baytown Energy Center near Houston.
The emissions will be captured as part of Calpine’s carbon capture and storage (CCS) project and sent through ExxonMobil’s Gulf Coast CO2 pipeline network—the largest of its kind globally.
This is ExxonMobil’s sixth CCS partnership, bringing its total contracted carbon storage volume to around 16 million metric tons per year.
“We’re thrilled to work with Calpine on this project that supports American energy security, enhances industrial competitiveness and leverages America’s abundant low-cost natural gas resources,” said Barry Engle, President of ExxonMobil Low Carbon Solutions.
“This agreement underscores the growing confidence our customers across diverse sectors — including steel, fertilizer, industrial gases, natural gas processing, and now power generation — have in our unique end-to-end CCS system.”
Calpine’s Baytown project will deliver around 500 megawatts of low-carbon electricity — enough to power over 500,000 homes — alongside steam supply for nearby industrial facilities.
Relevant: Calpine Gets Support From DOE For Baytown Carbon Capture Project
The project is currently in the development phase, with permitting and engineering underway, and is expected to generate both construction and long-term jobs.
“As the largest U.S. generator of electricity from natural gas, we understand that the nation’s gas fleet will remain the backbone of the grid for decades to come,” said Caleb Stephenson, Calpine Executive Vice President.
“We believe CCS is an actionable and cost-effective way to meet customers’ demand for reliable power and alleviate concerns about the indisputable long-term need for gas-fired facilities. Low-cost natural gas along with carbon capture technology and widespread geologic storage resources can bolster U.S. energy, natural gas use, jobs, and export strength.”
The deal reflects growing momentum in U.S. carbon capture efforts, although project execution still depends on regulatory approvals and supportive policy frameworks.
Read more: Exxon Seeks Confidentiality For Texas Carbon Storage Lease Agreement
