Exxon Mobil Corporation has signed a deal with Calpine Corporation to transport and permanently store up to 2 million metric tons per annum (MTA) of carbon dioxide (CO2) from Calpine’s Baytown Energy Center, a cogeneration facility near Houston.
ExxonMobil said in a media release that the Baytown Energy Center is part of Calpine’s Baytown Carbon Capture and Storage (CCS) project, which is designed to capture CO2 emissions and provide a constant supply of low-carbon electricity to Texas customers.
This agreement makes Calpine the sixth CCS customer of ExxonMobil, bringing the latter’s total amount of CO2 under contract to about 16 MTA, ExxonMobil said. The CO2 from Calpine’s facility will tie into ExxonMobil’s CO2 pipeline system, the largest in the world, which is strategically located along the U.S. Gulf Coast and supports enhanced oil recovery as well as permanent CO2 sequestration, according to ExxonMobil.
“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”, Barry Engle, President of ExxonMobil Low Carbon Solutions, said.
Calpine’s Baytown CCS Project aims to generate approximately 500 megawatts of low-carbon electricity, sufficient to supply power to over 500,000 households and steam for industrial applications, ExxonMobil said. Engineering, permitting, and additional development efforts are in progress.
“Calpine is excited to partner with ExxonMobil to achieve this important project milestone,” Caleb Stephenson, Calpine Executive Vice President, said. “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. 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 advancement of this project remains contingent on ongoing supportive government policy, customer power sales agreements, and receipt of necessary regulatory permits, ExxonMobil said.
To contact the author, email andreson.n.paul@gmail.com
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