Clean Hydrogen Works (CHW), a Texas-based developer, has filed an amended lawsuit in Texas Business Court against ExxonMobil and its subsidiary Denbury. The suit centers on a planned $7.5 billion "blue" ammonia facility in Donaldsonville, Louisiana, which would utilize carbon capture and storage technology.

Allegations Against ExxonMobil and Denbury

CHW accuses ExxonMobil of "abuse of market dominance" and employing "Rockefeller-style" tactics to sabotage the project. The core allegation is that ExxonMobil, through Denbury, sought to cancel contracts for carbon dioxide (CO2) offtake and transportation, and to recoup a $20 million investment Denbury had made in the project. CHW claims this was an attempt to "cripple or kill a low-cost competitor," especially since ExxonMobil had been planning a competing blue ammonia facility in Texas. CHW asserts that Denbury owns the only operating CO2 pipeline for carbon capture on the Gulf Coast, and cutting off access to it jeopardizes customer relationships and project financing.

Denbury's Counterclaims and Contractual Dispute

In its March 2025 court response, Denbury presents a contrasting narrative. It states that CHW has failed to meet key contractual milestones, including reaching a final investment decision or signing an engineering, procurement and construction contractor by the end of 2024. Denbury alleges the project has "no realistic chance" of success, citing a lack of financing agreements, engineering plans, permits, or ammonia offtake contracts. Denbury claims its contracts allow it to recoup the $20 million investment and force the sale of CHW's purchase option on the 1,700-acre site due to these failures. It accuses CHW of unilaterally extending the land purchase option to retain the investment for a "financially struggling project."

Background and Relationship Breakdown

Denbury was initially supportive of the CHW project, investing $20 million and signing agreements to transport and sequester the facility's CO2. The relationship deteriorated when Denbury sent a letter in February 2025 accusing CHW of failing to make progress and changing contracts without consent. CHW's lawsuit alleges this reversal occurred at ExxonMobil's direction following ExxonMobil's 2023 acquisition of Denbury, a $5 billion deal primarily to gain control of Denbury's extensive CO2 pipeline network.