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ExxonMobil signs CO2 deal with Calpine in Texas for future supply

Gas
April 24, 2025

Oil and gas giant ExxonMobil has signed a deal to transport and store up to two million tonnes a year of carbon dioxide from energy company Calpine’s Baytown natural gas-powered energy centre and carbon capture facility in Texas.

Calpine is the largest producer of electricity derived from natural gas in the US. The company’s Baytown project is expected to produce around 500 megawatts of electricity a year for Texas customers. The plant will also supply steam to nearby industrial facilities.

There are no timelines for the Calpine Baytown site yet, but a front-end engineering design study, as well as permitting and development, is underway.

Captured CO2 from Calpine’s Baytown facility will feed into ExxonMobil’s Gulf Coast pipeline system, which was expanded with its of US hydrocarbons business Denbury in November 2023.

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