ExxonMobil signs with Nucor for third carbon capture agreement

ExxonMobil has signed an agreement with Nucor Corporation, one of North America’s largest steel producers, to capture, transport and store up to 800,000 metric tons per year of CO2 from Nucor’s manufacturing site in Convent, Louisiana, U.S.A.

The Convent, Louisiana, site produces direct reduced iron (DRI), a raw material used to make high-quality steel products including automobiles, appliances and heavy equipment.  

The agreement is the third carbon capture agreement the U.S.-based energy major has announced in the past seven months, following previous agreement with industrial gas company Linde and CF Industries, maker of agricultural fertilizer.  

The agreement also marks a milestone, bringing the total CO2 that ExxonMobil has agreed to transport and store for third-party customers to five million metric tons per year (MTA). This is equivalent to replacing approximately two million gasoline-powered cars with electric vehicles, which is roughly equal to the total number of EVs on U.S. roads today.  

“Our agreement with Nucor is the latest example of how we’re delivering on our mission to help accelerate the world’s path to net zero and build a compelling new business,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “Momentum is building as customers recognise our ability to solve emission challenges at scale.” 

The Nucor project, which is expected to start up in 2026, will tie into the same CO2 transportation and storage infrastructure as utilised by the CF Industries project, and supports Louisiana’s objective of reaching net-zero CO2 emissions by 2050.