ExxonMobil and Nucor join CCS agreement

ExxonMobil's latest carbon capture and storage (CCS) agreement is with one of North America's largest steel producers, Nucor Corp.

North Carolina-based Nucor produces steel products that go into industrial and domestic goods such as automobiles, appliances, and heavy equipment.

Steelmaking, however, is an energy-intensive endeavor that accounts for roughly 7% of global carbon dioxide emissions.

Nucor has set in motion a multi-pronged strategy to reduce the carbon footprint of the steel it makes, including the CCS pact with ExxonMobil.

"We are taking a multi-faceted approach to decarbonization, and this partnership builds on previous investments we have made in a carbon-free iron start-up, renewable energy generation, and the development of small modular nuclear reactor technology," said Nucor Chair and CEO Leon Topalian.

Further details on Nucor's planned use of modular nuclear technology can be read at A nuclear option for zero-carbon steel in the May 17, 2023 edition of Metal Tech News.

For ExxonMobil, the CCS deal with Nucor marks the third agreement of its kind in the past seven months, following deals with industrial gas company Linde and American agricultural fertilizer maker CF Industries.

Expected to start up in 2026, the Nucor project will store the CO2 at an ExxonMobil-owned facility in Louisiana, utilizing the same transportation and storage infrastructure as CF Industries.

Making it their business

Per the United Nations and International Energy Agency, carbon-sequestering is one of the key technologies required to achieve societal climate goals at the lowest cost. CCS is also one of the few technologies that currently enables decarbonization of industry sectors, including refineries, chemical production, cement, and steel.

Since 2000, ExxonMobil has invested more than $10 billion to develop and deploy efficient low-carbon energy solutions across its operations. The company is collaborating with multiple partners in industry, academia, and government to advance CCS technologies that reduce costs and enhance scalability.

This includes about 80 universities in the U.S., Europe and Asia, and collaborations with FuelCell Energy on improving carbonate fuel cells for capturing CO2 from industrial facilities, and Global Thermostat's technology for efficiently capturing CO2 directly from the air.

The oil giant created ExxonMobil Low Carbon Solutions to commercialize technologies for energy-intensive sectors of the economy to help clients achieve net zero emissions and support climate goals outlined in the Paris Agreement.

This latest partnership to capture up to 800,000 metric tons of CO2 per year from Nucor's manufacturing site in Louisiana brings ExxonMobil's total stored CO2 to five million metric tons annually, equivalent to replacing approximately two million gas-powered cars.

"Our agreement with Nucor is the latest example of how we're delivering on our mission to help accelerate the world's path to net zero and build a compelling new business," said Dan Ammann, president of ExxonMobil Low Carbon Solutions. "Momentum is building as customers recognize our ability to solve emission challenges at scale."

Only the beginning

ExxonMobil has more than 20 new carbon capture and storage projects in motion around the world to secure large-scale emission reductions, including plans to invest $3 billion on lower-emission energy solutions through 2025.

ExxonMobil has more than 30 years of experience in CCS technology and has an equity share in about one-fifth of global CO2 capture capacity. The company was first to capture more than 120 million metric tons of CO2 – equivalent to the emissions of more than 25 million cars for one year – and has stored approximately 40% of all the captured anthropogenic CO2 in the world.

The company's experience in hydrogen production and other technologies in ExxonMobil's portfolio will be added as each is developed to the point of commercialization.

"With our demonstrated leadership in carbon capture and emissions reduction technologies, ExxonMobil is committed to meeting the demand for affordable energy while reducing emissions and managing the risks of climate change," said ExxonMobil Chairman and CEO Darren Woods.

Work in progress

ExxonMobil is building relationships across a wide range of technologies with the addition of marketing emission-reduction credits created through its sequestration projects.

Here are some of the company's CCS initiatives:

• Assessment of multiple projects along the U.S. Gulf Coast to collect CO2 industrial sources for storage in onshore and offshore geologic formations. Included in these projects is the concept for a hub in Southeast Texas as well as further permitting for the expansion of its La Barge facilities in Wyoming. Existing facilities currently capture approximately 7 million metric tons per year, which is the largest amount of CO2 captured by any industrial facility in the world.

• A joint development agreement in the Netherlands to advance Exxon's interest in the Port of Rotterdam CO2 Transportation Hub and Offshore Storage project, Porthos for short. The Porthos project aims to collect CO2 emissions from industrial sources and transport them by pipeline to depleted North Sea offshore gas fields. ExxonMobil also participates in the H-Vision study into large-scale production of low-carbon hydrogen in Rotterdam.

• Through its joint venture in the SEGAL pipeline system in Northeast Scotland, Exxon is in discussions to support the Acorn project, which will collect CO2 from the St. Fergus gas processing complex for transport and storage in offshore gas reservoirs. The international oil company is also participating in the multi-stakeholder CCS project at Belgium's Port of Antwerp, Europe's largest integrated energy and chemicals cluster.

• Partnerships in several existing joint ventures with Qatar Petroleum that operate a CCS project with an annual capacity of 2.1 million metric tons and evaluation of additional capture capacity in the region, with further plans for CCS hubs in Singapore. These projects expand Exxon's current carbon capture capacity in the U.S., Australia, and Qatar to around 9 million metric tons, the equivalent of planting 150 million trees per year.

"We are focused on proprietary projects and commercial partnerships that will have a demonstrably positive impact on our own emissions as well as those from the industrial, power generation and commercial transportation sectors, which together account for 80% of global CO2 emissions," said Woods. "We have the expertise that can help bring technologies to market and make a meaningful difference."