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:

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.

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.
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.
The UK's National Wealth Fund participates in a GBP 59.6 million funding round to finance a CO₂ capture pipeline for the cement and lime industry, targeting a final investment decision by 2028.
The Bayou Bend project, led by Chevron, Equinor, and TotalEnergies, aims to become a major hub for industrial carbon dioxide storage on the US Gulf Coast, with initial phases already completed.
US-based Chloris Geospatial has raised $8.5M from international investors to expand its satellite-based forest monitoring capabilities and strengthen its commercial position in Europe, addressing growing demand in the carbon market.
The federal government is funding three carbon capture, utilisation and storage initiatives in Alberta, strengthening national energy competitiveness and preparing infrastructure aligned with long-term emission-reduction goals.
Donald Trump approves a substantial increase in US tax credits aimed at carbon capture and utilization in oil projects, significantly reshaping economic outlooks for the energy sector and drawing attention from specialized investors.
The European Union unveils a plan aimed at protecting its exporting industries from rising carbon policy costs, using revenue generated from its border adjustment mechanism.
Colombia is experiencing a significant drop in voluntary carbon credit prices due to a major oversupply, destabilizing the financial balance of associated communities and projects.
France and Norway sign an agreement facilitating the international transport of CO₂ to offshore geological storage facilities, notably through the Northern Lights project and the CO₂ Highway Europe infrastructure.
Frontier Infrastructure Holdings has signed an offtake agreement with manager Wild Assets for up to 120 000 tonnes of BECCS credits, underscoring the voluntary market’s growing appetite for traceable, high-permanence carbon removals.
Global carbon capture and offset credit markets could exceed $1.35 trillion by 2050, driven by private investment, technological advances, and regulatory developments, according to analysis published by Wood Mackenzie.
The Australian carbon credit market is experiencing temporary price stabilization, while the emergence of new alternative financial instruments gradually attracts corporate attention, subtly altering the commercial and financial dynamics of the sector.
Norway has launched a major industrial project aimed at capturing, maritime transport, and geological storage of CO₂, mobilizing key energy players and significant public subsidies to ensure economic viability.
A €21mn European grant, managed by EIB Global, will fund Egyptian projects aimed at cutting industrial emissions and boosting recycling, while a related €135mn loan is expected to raise additional climate investments.
Stockholm Exergi begins construction of a CO₂ capture facility in Stockholm, integrated with the expansion of Northern Lights in Norway, reaching a total storage capacity of 5 million tonnes per year by 2028.
Global emissions coverage by carbon pricing systems reaches 28%, driven by expanding compliance markets, where demand nearly tripled within one year, according to a World Bank report.
Vietnam initiates a pilot carbon market targeting steel, cement, and thermal energy industries to prepare for nationwide regulation starting in 2029.
The U.S. Environmental Protection Agency (EPA) proposes granting Texas direct authority to issue carbon dioxide injection permits, potentially accelerating the commercial expansion of geological CO₂ storage projects.
Höegh Evi and Aker BP received Approval in Principle from DNV for a maritime carrier designed to transport liquefied CO₂ to offshore storage sites in Norway.