Exxon Mobil makes a power play in the carbon capture market with a massive $4.9 billion acquisition of pipeline operator Denbury!
This move places Exxon firmly on the map in the carbon capture market, offering it “critical and hard-to-replicate infrastructure” and paving the way for its ambitious goal of reaching net-zero emissions by 2050.
The Texas-based Denbury boasts a network of 1,300 miles of carbon dioxide pipelines located near the Gulf Coast, making it an ideal partner for Exxon’s $17 billion low-carbon initiative by 2027.
On top of this, the Inflation Reduction Act’s lucrative tax credits for carbon capture technologies provide Exxon with an attractive financial incentive to drive the technology further.
But let’s not overlook the real value of this acquisition. Denbury isn’t just any pipeline operator — it’s an experienced developer of carbon capture, utilization, and storage (CCUS) solutions. Combine this with Exxon’s decades of expertise, and we have a dynamic duo ready to tackle the carbon emission challenge.
Beyond just carbon capture, this acquisition also fuels Exxon’s growth in other low carbon value chains like hydrogen, ammonia, and biofuels.
All signs point towards a promising synergy, driving strong growth and returns for Exxon. But the true measure of success? The potential to reduce emissions by over 100 million metric tons per year.
Stay tuned to watch this space as Exxon and Denbury join forces in the race towards a sustainable future.