ExxonMobil Reaches CCS Deal with Nucor Steel

Researched by Industrial Info Resources (Sugar Land, Texas)--Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) has agreed to capture up to 800,000 metric tons of carbon dioxide (CO2) per year from Nucor Corporation's (NYSE:NUE) (Charlotte, North Carolina) direct reduced iron (DRI) plant in Convent, Louisiana, the companies said last week.

ExxonMobil said it will capture, transport and store the CO2. The company said the agreement is the third carbon capture agreement it has announced in the past seven months. ExxonMobil added that the Nucor deal marks a milestone by bringing the total CO2 it has agreed to transport and store for third-party customers to 5 million metric tons per year.

Nucor Chief Executive Officer Leon Topalian said: "This transformative CCS project with ExxonMobil is a key part of our decarbonization strategy and will result in some of the lowest embodied carbon DRI or HBI (hot-briquetted iron) in North America."

The project would be built at Nucor's 5.5 million-ton-per-year DRI plant. Subscribers of Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the Nucor project report. Construction kickoff is planned for second-quarter 2025, with completion set for first-quarter 2026.

The Nucor project would tie into the same CO2 transportation and storage infrastructure as used by CF Industries Holdings Incorporated's (NYSE:CF) (Deerfield, Illinois) project with ExxonMobil and supports Louisiana's objective of reaching net-zero CO2 emissions by 2050, ExxonMobil said.

CF Industries plans to build a CO2 dehydration and compression unit as part of a 1.7 million-ton-per-year blue ammonia project at its Donaldsonville, Louisiana, facility to enable captured CO2 to be transported and stored. ExxonMobil would then transport and permanently store the captured CO2 in geologic storage it owns in Vermilion Parish. As part of the project, ExxonMobil has signed an agreement with EnLink Midstream (NYSE:ENLC) (Dallas, Texas) to use EnLink's transportation network to deliver CO2 to permanent geologic storage. Subscribers can click here for the CF Industries project report. For more information, see October 14, 2022, article - CF Industries Partners With ExxonMobil on CO2 Storage in Louisiana.

In all, Industrial Info is tracking 19 ExxonMobil carbon capture and storage (CCS) projects for its facilities across the globe, with a total value of $7.54 billion. Subscribers can click here for a list of detailed project reports.

Subscribers can click here for a list of project reports mentioned in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).