ExxonMobil is to launch a new business to commercialise and deploy low-carbon technology with an initial focus on advancing plans for more than 20 new carbon capture and storage (CCS) projects, it announced yesterday.

ExxonMobil Low Carbon Solutions will focus on CCS facilities—which are widely seen as being critical to hitting Paris Agreement targets—to enable large-scale emission reductions around the world. The major plans to invest $3bn on lower-emission energy solutions in the next five years.

“With our demonstrated leadership in carbon capture and emissions reduction technologies, ExxonMobil is committed to meeting the demand for affordable energy while reducing emissions and managing the risks of climate change,” said Darren Woods, chairman and chief executive officer, at the launch.

“We have the expertise that can help bring technologies to market and make a meaningful difference” Woods, ExxonMobil

ExxonMobil has more than 30 years of experience in CCS technology and was the first company to capture more than 120mn t of CO₂. It has an equity share in c.20pc of global CO₂ capture capacity and accounts for c.40pc of all the captured anthropogenic CO₂ in the world, according to the Texas-based firm.

The new projects will complement ExxonMobil’s approximately 9mn t/yr carbon capture capacity in the US, Australia and Qatar. CCS projects and partnerships under evaluation are based in the Gulf Coast and Wyoming in the US; the Netherlands, Belgium and Scotland in Europe; Singapore; and Qatar.

“We are focused on proprietary projects and commercial partnerships that will have a demonstrably positive impact on our own emissions as well as those from the industrial, power generation and commercial transportation sectors, which together account for 80pc of global CO₂ emissions," said Woods. "We have the expertise that can help bring technologies to market and make a meaningful difference.”

Credit watch

ExxonMobil was among 13 oil and gas companies placed on negative watch by credit rating agency S&P Global Ratings in late January, the first step before a potential downgrade. It cited concerns about the sustainability of the companies’ businesses during the energy transition as the reason they were under consideration. 

$3bn – ExxonMobil investment in Low Carbon Solutions over five years

The new business, which will be led by vice president Joe Blommaert, will also be involved in the production of hydrogen and will expand into other low-carbon areas when they are considered commercially viable.

The business will seek to develop partnerships and collaborations on a wide range of technologies, and be responsible for marketing of emission-reduction credits created through the business’s sequestration projects.

ExxonMobil won four gongs in the 2020 PE Awards, including energy leader of the year and project of the year.

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Author: Alastair O’Dell<BR>Senior Editor