ExxonMobil secures largest offshore CO2 storage site in the U.S.

In an agreement signed today 10 Oct by Texas Land Commissioner Dawn Buckingham, M.D. and Dominic Genetti, senior vice president, ExxonMobil Low Carbon Solutions, Exxon Mobil Corporation (NYSE: XOM) has secured the largest offshore CO2 storage lease in the U.S. The agreement with the Texas General Land Office (GLO) covers approximately 271,068 acres of submerged state land located offshore in Jefferson, Chambers, and Galveston Counties.

Under the terms of the agreement, ExxonMobil will have the right to inject carbon dioxide into geologically secure strata located approximately one to two miles below the surface of the Gulf of Mexico. The over 271,000-acre site complements the onshore CO2 storage portfolio ExxonMobil is developing, and, says the company, further solidifies the U.S. Gulf Coast as a carbon capture and storage (CCS) leader.

“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 comprehensive solution that includes capture, transportation, and storage—capabilities that make us a clear leader.”

The terms of the agreement will directly benefit the Texas Permanent School Fund. This will enhance education for Texas children, while also reducing emissions and promoting community development in nearby areas.

For the maritime industry, what’s interesting is how ExxonMobile will get the captured carbon into storage. The The company says that it operates the largest CO2 pipeline network in the U.S. and is “well-positioned to leverage its extensive infrastructure and storage space to deliver an end-to-end solution.”

Could one of those “ends” be reached using the kinds of LCO2 carriers used in Norway’s Northern Lights offshore CO2 storage project? Or, more plausibly for a Jones Act cargo movement, the type of LCO2 ATB solution being eyed by OSG to transport CO2 captured by emitters in the Greater Tampa Bay region and from across the State of Florida to sequestration sites in the Gulf of Mexico?