ExxonMobil has received regulatory approval to store carbon dioxide emissions in underground wells in Texas, marking a significant step forward for the company’s $5 billion-plus Rose carbon capture and storage (CCS) project. The Texas Railroad Commission granted the permit following a narrowly split vote on Tuesday, allowing Exxon to inject approximately 53 million tonnes of CO₂ into three wells located in Jefferson County, about 90 miles east of Houston.

The approval paves the way for Exxon to develop what it aims to be the world’s largest carbon capture pipeline network, extending roughly 900 miles along the US Gulf Coast. The network is designed to transport CO₂ emissions from industrial customers to porous rock formations underground for permanent storage. This initiative aligns with Exxon’s strategy to position itself, and other companies traditionally involved in fossil fuel production, as participants in decarbonization efforts.

Carbon capture and storage technology involves capturing CO₂ emissions before they reach the atmosphere, compressing the gas, and injecting it deep underground. While earlier CCS projects often faced financial challenges, global investment in the technology has grown substantially, increasing from $4.1 billion in 2024 to $6.6 billion last year. The number of commercially operating carbon capture plants rose by about one-third to 77, with 44 additional facilities currently under construction worldwide.

Other US oil companies are also investing in related carbon removal technologies. For example, Occidental Petroleum plans to operate the world’s largest carbon extraction plant, which removes CO₂ directly from the atmosphere, beginning in Texas in 2027. This CO₂ can then be stored permanently or repurposed.

The approval followed a public hearing marked by opposition from community groups and political figures concerned about the safety and economic implications of CCS projects in Texas and neighboring Louisiana. Critics have questioned the reliance on federal tax incentives, introduced during the Biden administration, to make these projects financially viable. Jason Isaac, a former Republican politician and founder of the American Energy Institute, argued that CCS should not impose costs on ratepayers or taxpayers.

Wayne Christian, the Texas Railroad Commissioner who opposed the permit, unsuccessfully sought to delay the vote. He described the decision as the most controversial to come before the commission in the past decade. In contrast, Dominic Genetti, Exxon's senior vice president for CCS, hailed the permit approval as a “major milestone” that could attract substantial investment beyond the capture and storage operations themselves, potentially reaching tens of billions of dollars.

The decision underscores ongoing debates over the role of CCS technology within the broader transition to lower-carbon energy sources, balancing economic opportunities with environmental and public safety concerns.