ExxonMobil has signed an agreement with Calpine Corporation, the largest U.S. producer of electricity from natural gas, to transport and store up to 2 million metric tons of CO2 per year from Calpine’s Baytown Energy Center near Houston, Texas. This forms part of Calpine’s Baytown Carbon Capture and Storage (CCS) Project, which captures CO2 emissions to provide low-carbon electricity to Texas customers round-the-clock and steam to nearby industrial facilities.

This deal makes Calpine ExxonMobil’s sixth CCS customer, raising the company’s total contracted CO2 volume to about 16 million metric tons annually. The CO2 from Calpine’s facility will connect to ExxonMobil’s extensive CO2 pipeline system along the U.S. Gulf Coast, the largest of its kind globally, supporting both enhanced oil recovery and permanent CO2 storage.

Barry Engle, President of ExxonMobil Low Carbon Solutions, said: “We’re thrilled to work with Calpine on this project that supports American energy security, enhances industrial competitiveness and leverages America’s abundant low-cost natural gas resources.” The collaboration highlights confidence in ExxonMobil’s end-to-end CCS system across industries like steel, fertilizer, industrial gases, natural gas processing, and now power generation.

Calpine’s Baytown CCS Project is expected to generate approximately 500 megawatts of low-carbon electricity, sufficient to power over 500,000 homes, alongside steam for industrial use. Engineering, permitting, and development activities are in progress, with the project set to create numerous construction and permanent jobs.

Caleb Stephenson, Calpine Executive Vice President, stated: “Calpine is excited to partner with ExxonMobil to achieve this important project milestone.” He emphasized that natural gas will remain a cornerstone of the U.S. power grid for decades, adding: “We believe CCS is an actionable and cost-effective way to meet customers' demand for reliable power and alleviate concerns about the indisputable long-term need for gas-fired facilities.” Stephenson noted that low-cost natural gas, combined with carbon capture and geologic storage, can strengthen U.S. energy, jobs, and natural gas utilization.

Stephenson also acknowledged supportive U.S. government policies, saying: “We’re grateful to the Trump administration for championing expanded energy and electricity production to power America’s economy and to the Department of Energy for its longstanding role in power sector and CCS technology advancement.” These policies have enabled Calpine to invest in projects like the recently acquired Quail Run Energy Center in the Permian and other generation and storage initiatives nationwide. He added: “We believe we are on the brink of commercializing CCS technology.”

The project’s progress depends on continued supportive government policies, customer power sales agreements, and obtaining necessary regulatory permits.