ExxonMobil has reached a $4.9 billion deal to purchase a carbon solutions company with numerous Mississippi facilities.
The natural gas corporation has entered into a definitive agreement to acquire Denbury Inc., a developer of carbon capture, utilization, and storage (CCS) solutions and enhanced oil recovery.
The acquisition of Denbury provides ExxonMobil with the largest owned and operated carbon dioxide pipeline network in the U.S. at 1,300 miles, including nearly 925 miles of pipelines in Louisiana, Texas, and Mississippi – located within one of the largest U.S. markets for carbon dioxide emissions, as well as 10 strategically located onshore sequestration sites.
ExxonMobil will also assume ownership of Jackson Dome, the only significant natural underground deposit of carbon dioxide in the United States east of the Mississippi River, which is located right outside of Mississippi’s capital city.
“Acquiring Denbury reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonize industries with a comprehensive carbon capture and sequestration offering,” Darren Woods, Chairman and CEO, said.
“The breadth of Denbury’s network, when added to ExxonMobil’s decades of experience and capabilities in CCS, gives us the opportunity to play an even greater role in a thoughtful energy transition, as we continue to deliver on our commitment to provide the world with the vital energy and products it needs.”
The purchase is part of the oil corporation’s plan to continue transitioning into a clean energy provider that is able to turn a profit.