Exxon strikes CO2 capture deal with steel giant Nucor

Exxon just announced a deal with steel giant Nucor to trap, transport and store carbon dioxide emissions from a Louisiana plant.

Why it matters: Metals production spews lots of CO2, and it's a very tough to decarbonize industry due to high heat requirements.

Driving the news: Exxon said beginning in 2026, it will capture up to 800,000 metric tons of CO2 annually from a Convent, Louisiana plant that produces a steel input called "direct reduced iron."

• The financial terms and duration were not disclosed.

State of play: It's the third CO2 capture deal Exxon has reached over the last seven months, following tie-ups with industrial gas giant Linde and fertilizer maker CF Industries.

• The deals together commit the company to transporting and storing 5 million metric tons annually, Exxon said.
• That's akin to replacing 2 million gasoline-powered cars with electric models, it added.

What they're saying: "Momentum is building as customers recognize our ability to solve emission challenges at scale," Dan Ammann, head of Exxon's low-carbon business, said in a statement.

The big picture: With oil sector investments in climate-friendly energy have been growing, Exxon plans to spend roughly $7 billion through 2027 on projects with industrial partners, and $10 billion to cut emissions from its own operations.

Yes, but: The International Energy Agency last week called out the oil and gas industry for not investing more in low-carbon projects, given its massive oil profits and global emissions-cutting needs.

Flashback: Ammann recently told Axios the "limiting factor" in scaling low-carbon ventures is not capital, but finding viable projects and customers.