ExxonMobil Secures Largest Offshore CO2 Storage Lease in U.S. History

Exxon Mobil Corporation (NYSE: XOM) has securing the largest offshore carbon dioxide (CO2) storage lease in U.S. history.

The Texas General Land Office (GLO) awarded ExxonMobil the lease covering approximately 271,068 acres of submerged state land off the coast of Jefferson, Chambers, and Galveston Counties.

Under the terms of the agreement, ExxonMobil will inject carbon dioxide into geologically secure strata located one to two miles beneath the Gulf of Mexico’s seabed.

This historic agreement marks a significant milestone in Carbon Capture and Sequestration (CCS) efforts, representing the most extensive CCS transportation and storage lease not only in Texas but across the entire United States. The deal is set to have far-reaching impacts, benefiting both environmental initiatives and Texas public education. It also highlights the Gulf’s vast potential for CO2 storage, playing a crucial role in meeting society’s net-zero goals.

“As the steward of 13 million acres of energy-rich state land, I am proud to partner with ExxonMobil in utilizing state land for innovative solutions that can help ensure future energy production,” said Texas Land Commissioner Dawn Buckingham. “Energy independence is vital to ensuring our state and country remain economic leaders around the globe.”

The agreement is expected to generate substantial revenue for the Texas Permanent School Fund (PSF), providing millions in funding for Texas public school children through exceptional investment returns.

“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,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions.

This landmark deal positions ExxonMobil at the forefront of CCS technology implementation in the U.S. The company already operates the largest CO2 pipeline network in the U.S. and is equipped to leverage its extensive infrastructure to deliver an end-to-end solution for carbon capture and storage.