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Exxon Mobil Corp.听 has entered into a carbon capture and storage (CCS) agreement with Calpine Corp., the largest U.S. producer of electricity from natural gas. The partnership aims to transport and permanently store up to 2 million metric tons of carbon dioxide annually from Calpine鈥檚 Baytown Energy Center, a cogeneration facility located near Houston.

This initiative is part of Calpine鈥檚 Baytown CCS Project, which is designed to reduce the facility鈥檚 CO2 emissions. The project will support the round-the-clock delivery of low-carbon electricity to Texas customers and provide steam to nearby industrial operations.

The agreement marks ExxonMobil鈥檚 sixth CCS partnership, increasing the total contracted CO2 volume in its portfolio to approximately 16 million metric tons per year. The captured emissions from Calpine鈥檚 Baytown site will connect to ExxonMobil鈥檚 extensive CO2 pipeline system鈥攖he largest of its kind globally. Strategically positioned along the U.S. Gulf Coast, the pipeline network supports both enhanced oil recovery and permanent carbon sequestration.

鈥淲e鈥檙e thrilled to work with Calpine on a project that supports U.S. energy security, industrial competitiveness, and leverages America鈥檚 abundant, low-cost natural gas,鈥� said Barry Engle, president of ExxonMobil Low Carbon Solutions. 鈥淭his agreement reflects the growing trust our customers across sectors鈥攊ncluding steel, fertilizer, industrial gases, natural gas processing, and now power generation鈥攈ave in our CCS capabilities.鈥�

Calpine鈥檚 Baytown project is expected to deliver approximately 500 megawatts of low-carbon electricity, enough to power over 500,000 homes. It will also supply steam for industrial use. Development activities, including engineering and permitting, are currently underway. The project is projected to generate significant construction and long-term jobs.

鈥淐alpine is excited to partner with ExxonMobil to reach this important milestone,鈥� said Caleb Stephenson, executive vice president of Calpine. 鈥淣atural gas will remain a cornerstone of America鈥檚 energy system for decades. Carbon capture is a practical and cost-effective solution for meeting the demand for reliable power while addressing long-term emissions concerns.鈥�

Stephenson emphasized that the availability of low-cost natural gas, combined with CCS technology and widespread geologic storage, will help bolster U.S. energy production, job creation, and exports. He also expressed appreciation for the federal government鈥檚 support, particularly from the Trump administration and the Department of Energy, for advancing CCS and power sector innovation.

The future of the project depends on supportive public policy, regulatory approvals, and customer power purchase agreements.

ExxonMobil is one of the world鈥檚 largest publicly traded energy and petrochemical companies, focused on developing solutions that enhance quality of life and address the changing needs of society.

The company operates through three core businesses鈥擴pstream, Product Solutions, and Low Carbon Solutions鈥攄elivering essential products such as energy, chemicals, lubricants, and technologies aimed at reducing emissions. With a leading portfolio of global resources, ExxonMobil is also among the largest integrated providers of fuels, lubricants, and chemical products worldwide.