Energy company ExxonMobil has revealed its intention to acquire Denbury, an energy company that specializes in carbon capture and CO2 utilization. The deal, valued at $4.9 billion, aims to expedite ExxonMobil’s low-carbon initiatives and offer carbon capture services to industries that are facing challenges to decarbonise.
Denbury primarily engages in oil production, focusing on the development of stranded reserves from depleted sources by injecting captured CO2 sourced from industries. The company has achieved net negative emissions in Scope 1 and 2, with the objective of attaining net-zero emissions across all scopes by 2030. However, Denbury’s Scope 3 emissions, which are considerably larger, exceeded 11 million tons in 2021, according to their recent Corporate Responsibility Report.
Furthermore, Denbury has a strong emphasis on carbon capture, utilization, and storage (CCS) solutions, boasting the world’s largest privately owned 1,300-mile CO2 pipeline network and an expanding collection of properties for carbon sequestration.
This acquisition follows Exxon’s announcement last year to invest over $15 billion within the next six years to reduce greenhouse gas emissions in its operations and pursue lower-emission business opportunities that aid customers in emission reduction. In 2021, the company established a Low Carbon Solutions division, concentrating on areas such as carbon capture and storage, hydrogen, and biofuels.