- Calpine and ExxonMobil partner to capture and store up to 2 million tonnes of CO2 annually from the Baytown Energy Centre in Texas.
- The Baytown CCS Project will generate 500 megawatts of low-carbon electricity and provide steam to nearby industries.
- The project depends on supportive public policies, finalised power agreements, and necessary regulatory permits for development.
Calpine Corporation has teamed up with ExxonMobil to capture and store up to 2 million tonnes of carbon dioxide (CO2) per year from its Baytown Energy Centre near Houston. This agreement supports the Baytown Carbon Capture and Storage (CCS) Project, which targets emissions reduction at the facility.
ExxonMobil will transport the captured CO2 through its largest CO2 pipeline system, which is positioned along the U.S. Gulf Coast. The pipeline serves both enhanced oil recovery and permanent CO2 sequestration. The deal marks ExxonMobil’s sixth CCS customer, bringing the total CO2 contracted for storage to around 16 million tonnes annually.
President of ExxonMobil Low Carbon Solutions, Barry Engle, said, “We are excited to work with Calpine on a project that boosts American energy security and strengthens industrial competitiveness.”
The Baytown CCS Project will produce 500 megawatts of low-carbon electricity to power over 500,000 homes and supply steam to nearby industries. Engineers and developers are working on the project’s design and permits, and construction is expected to create numerous permanent and temporary jobs.
Caleb Stephenson, Executive Vice President of Calpine, emphasised that natural gas will remain essential for the grid for decades. He also pointed out that carbon capture and storage offers a “realistic and cost-effective” way to provide reliable power while reducing emissions.
The project’s success depends on continued public policy support, finalising power purchase agreements, and securing regulatory permits. Calpine also expressed appreciation for government support in expanding its energy infrastructure, including the recent acquisition of the Quail Run Energy Centre in the Permian Basin and other generation and storage projects across the U.S.
Both companies emphasised the need to advance technologies that reduce CO2 emissions. Calpine highlighted the role of CCS in meeting future energy needs without compromising environmental goals.