Exxon Mobil acquires Denbury, specialist in CO2 capture

Exxon Mobil announces the acquisition of Denbury, a company specialized in CO2 capture, for $4.9 billion in shares, marking an important step towards industrial decarbonization. This merger will enable ExxonMobil to offer low-emission solutions and reduce greenhouse gas emissions by more than 100 million tonnes a year, while gaining an extensive pipeline network and additional oil activities.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

US oil and gas giant Exxon Mobil announced the acquisition of Denbury on Thursday. A U.S. company specializing in CO2 capture, valued at $4.9 billion through this all-share transaction.

The merger of ExxonMobil and Denbury: a major step towards industrial decarbonization

This acquisition “illustrates our determination to profitably grow our low-emission solutions business by offering hard-to-decarbonize industries a complete range of carbon dioxide capture and sequestration,” commented ExxonMobil boss Darren Woods, quoted in a statement.

The transaction still requires the approval of Denbury shareholders and regulatory authorities. Completion is scheduled for the fourth quarter of 2023.

At the same time, the group is acquiring a vast network of over 2,000 kilometers of gas pipelines – including almost 1,500 km for CO2 transport – in the southern United States (Louisiana, Texas, Mississippi) and ten “strategically located” onshore sequestration sites.

The combined resources of the two companies “have the potential to reduce greenhouse gas emissions by more than 100 million tons per year in one of the highest emitting regions of the United States”, commented Dan Ammann, President of ExxonMobil’s Low Carbon Solutions business.

ExxonMobil and Denbury agree to acquire oil and gas activities

ExxonMobil will also recover oil and natural gas activities located on the Gulf Coast and in the Rocky Mountain range. They represent estimated reserves of over 200 million barrels of oil.

Under the terms of the agreement between the two companies. Denbury shareholders will receive 0.84 of an ExxonMobil share for one Denbury share.

Denbury’s management examined “various options to maximize long-term value. (…) it became clear that the transaction with ExxonMobil was in the best interests of the company”, explained Denbury boss ChrisKendall, quoted in the press release.

At 13:50 GMT, ExxonMobil shares were down 1.54% at $104.93. And Denbury’s was down 1.05% at $86.83.

Hanwha Power Systems has signed a contract to supply mechanical vapour recompression compressors for a European combined-cycle power plant integrating carbon capture and storage.
A prudent limit of 1,460 GtCO2 for geologic storage reshapes the split between industrial abatement and net removals, with oil-scale injection needs and an onshore/offshore distribution that will define logistics, costs and liabilities.
The Northern Lights project has injected its first volume of CO2 under the North Sea, marking an industrial milestone for carbon transport and storage in Europe.
Verra and S&P Global Commodity Insights join forces to build a next-generation registry aimed at strengthening carbon market integration and enhancing transaction transparency.
Singapore signs its first regional carbon credit agreement with Thailand, paving the way for new financial flows and stronger cooperation within ASEAN.
Eni sells nearly half of Eni CCUS Holding to GIP, consolidating a structure dedicated to carbon capture and storage projects across Europe.
Investors hold 28.9 million EUAs net long as of August 8, four-month record level. Prices stable around 71 euros despite divergent fundamentals.
The federal government is funding an Ottawa-based company’s project to design a CO2 capture unit adapted to cold climates and integrated into a shipping container.
Fluenta has completed the installation of its Bias-90 FlarePhase system at the Pelican Amine Treating Plant in Louisiana, marking progress in the measurement of flare gas flows with very high carbon dioxide concentrations.
Alberta carbon credits trade at 74% below federal price as inventory reaches three years of surplus, raising questions about regulatory equivalence before 2026 review.
The integration of carbon capture credits into the British trading system by 2029 raises questions about the price gap with allowances and limited supply capacity.
Carbon Ridge reaches a major milestone by deploying the first centrifugal carbon capture technology on a Scorpio Tankers oil tanker, alongside a new funding round exceeding $20mn.
Elimini and HOFOR join forces to transform the AMV4 unit at Amagerværket with a BECCS project, aiming for large-scale CO₂ capture and the creation of certified carbon credits. —
Carbonova receives $3.20mn from the Advanced Materials Challenge programme to launch the first commercial demonstration unit for carbon nanofibers in Calgary, accelerating industrial development in advanced materials.
Chestnut Carbon has secured a non-recourse loan of $210mn led by J.P. Morgan, marking a significant step for afforestation project financing and the growth of the U.S. voluntary carbon market.
TotalEnergies seals partnership with NativState to develop thirteen forestry management projects across 100,000 hectares, providing an economic alternative to intensive timber harvesting for hundreds of private landowners.
Drax’s generation site recorded a 16% rise in its emissions, consolidating its position as the UK’s main emitter, according to analysis published by think tank Ember.
Graphano Energy announces an initial mineral resource estimate for its Lac Saguay graphite properties in Québec, highlighting immediate development potential near major transport routes, supported by independent analyses.
Carbon2Nature, a subsidiary of Iberdrola, partners with law firm Uría Menéndez on a 90-hectare reforestation project in Sierra de Francia, targeting carbon footprint compensation for the legal sector.
North Sea Farmers has carried out the very first commercial-scale seaweed harvest in an offshore wind farm, supported by funding from the Amazon Right Now climate fund.

Log in to read this article

You'll also have access to a selection of our best content.