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Calpine, ExxonMobil sign CO2 transport, storage agreement for power generation project
Date posted:
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Post Author
Tracey Biller
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Exxon Mobil Corporation is to transport and store up to 2 million metric tons per year of CO2 from the natural gas power generation facility at Calpine’s Baytown Energy Center near Houston.
This is in terms of an agreement between ExxonMobil and Calpine Corporation, America’s largest producer of electricity from natural gas.
The underlying project has been designed to capture CO2 from the Baytown cogeneration facility and produce about 500 megawatts of low-carbon electricity, enough to power more than 500,000 homes, as well as steam for industrial use.
Engineering, permitting, and other development activities are underway. The project anticipates creating significant construction and permanent jobs.
In a press statement, ExxonMobil identified Calpine as its sixth CCS customer, bringing the company’s total amount of CO2 under contract to ~16 MTA. The CO2 from Calpine’s facility will tie into ExxonMobil’s CO2 pipeline system, the largest in the world. The pipeline is strategically located along the U.S. Gulf Coast and supports enhanced oil recovery as well as permanent CO2 sequestration.
In its press statement, ExonnMobil also said that the advancement of the project “remains contingent on ongoing supportive government policy, customer power sales agreements, and receipt of necessary regulatory permits.”