ExxonMobil, one of the world’s largest energy companies, has announced its acquisition of Denbury, a carbon emissions solutions company, in a deal valued at $4.9 billion. The move is part of Exxon’s ongoing efforts to reduce its carbon emissions and support its energy transition plans.
As Exxon aims to achieve net-zero emissions by 2050, the acquisition of Denbury provides the company with access to the largest operated CO2 pipeline network in the United States. Denbury specializes in developing carbon capture, utilization, and storage (CCS) solutions, and its extensive CO2 pipeline spans over 1,300 miles across Louisiana, Texas, and Mississippi.
By integrating Denbury’s capabilities and infrastructure, Exxon aims to leverage carbon capture technologies to reduce its environmental footprint and support the transition to cleaner energy sources. The acquisition aligns with Exxon’s commitment to investing in technologies and solutions that mitigate greenhouse gas emissions.
This is not the first acquisition made by Exxon in pursuit of its net-zero goals. In 2022, the company acquired a 49.9% stake in Biojet AS, a Norwegian firm focused on converting forestry and wood-based waste into biofuels and biofuel components. These acquisitions reflect Exxon’s strategic approach to diversifying its portfolio and incorporating innovative solutions to address climate change.
Exxon, along with other companies, has also proposed a large-scale carbon capture and storage hub in the Houston industrial area. The hub aims to capture approximately 100 million metric tons of CO2 annually from refineries, chemical plants, and power generation facilities by 2040.
Following the announcement, Exxon shares experienced a decline of nearly 2% and were trading at $104 per share. Denbury’s shares also fell by about 1.3% and were trading at over $86 per share. The acquisition is expected to be completed in the fourth quarter of 2023, subject to regulatory approvals.
With the acquisition of Denbury, Exxon strengthens its position in carbon emissions reduction and advances its commitment to sustainable practices in the energy sector.