ExxonMobil has obtained state approval in Texas for its $5 billion Rose carbon capture and storage project, removing a key regulatory barrier for the oil major's planned carbon pipeline network along the U.S. Gulf Coast, according to documents from the Texas Railroad Commission.

The Commission voted 2-1 to issue the injection permit for the development in Jefferson County, east of Houston. The permit authorizes ExxonMobil to inject up to 53 million tonnes of CO2 underground via three storage wells over a 13-year operational window.

The wider $5-billion scheme will construct an approximately 900-mile carbon pipeline network. It is designed to capture CO2 emissions from industrial clients across the Gulf Coast and store the gas permanently within deep underground rock formations.

The commission vote passed by a narrow margin. Dissenting commissioner Wayne Christian voiced concerns over long-term geological storage safety and reliance on federal taxpayer subsidies from the U.S. 45Q carbon sequestration tax credit, which provides credits of up to $85 per tonne for permanently sequestered CO2.

ExxonMobil's low-carbon unit stated the Rose project serves as the cornerstone of its carbon capture and storage (CCS) strategy. The firm intends to develop a viable decarbonization business by providing carbon removal services for refineries, chemical plants and other heavy industrial emitters.

Analysts commented that the state permit marks a vital milestone, yet full project rollout still needs further federal approvals, binding offtake deals with industrial customers and a final investment decision.