Exxon Mobil has announced it has entered into an agreement to acquire developer of carbon capture, utilisation and storage (CCS) solutions and enhanced oil recovery, Denbury.
Combined assets and capabilities further accelerate ExxonMobil’s Low Carbon Solutions business and create a further customer decarbonisation proposition. Leading CCS network underpins ExxonMobil’s commitment to low carbon value chains including CCS, hydrogen, ammonia, biofuels, and direct air capture.
The acquisition of Denbury provides ExxonMobil with the largest owned and operated CO2 pipeline network in the U.S. at 1,300 miles, including nearly 925 miles of CO2 pipelines in Louisiana, Texas, and Mississippi.
Darren Woods, Chairman and CEO, says: ‘Acquiring Denbury reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonise industries with a comprehensive carbon capture and sequestration offering…Denbury’s advantaged CO2 infrastructure provides significant opportunities to expand and accelerate ExxonMobil’s low-carbon leadership…this combination of assets and capabilities has the potential to profitably reduce emissions by more than 100 million metric tons per year…’
Chris Kendall, Denbury’s president and CEO adds: ‘This transaction is a compelling opportunity for Denbury to join an admired global energy leader with a low-carbon focus, a robust balance sheet and a leading shareholder return program. Importantly, given the significant capital and years of work required to fully develop our CO2 business, ExxonMobil is the ideal partner with extensive resources and capabilities.”