ExxonMobil has announced the creation of a new business to commercialise its low-carbon technology portfolio.
The new business, ExxonMobil Low Carbon Solutions, will initially focus on carbon capture and storage, one of the critical technologies required to achieve net zero emissions and the climate goals outlined in the Paris Agreement.
The company plans to invest $3 billion on lower emission energy solutions through 2025 and is advancing plans for more than 20 new carbon capture and storage opportunities around the world to enable large-scale emission reductions.
The business will be led by Joe Blommaert, who has more than 30 years of experience in the industry with leadership roles in technology advancement, product marketing, and operations. The board of directors has elected him as a vice president of Exxon Mobil Corporation.
CCS is the process of capturing CO2 that would otherwise be released into the atmosphere from industrial activity, and injecting it into deep geologic formations for safe, secure and permanent storage.
The United Nations Intergovernmental Panel on Climate Change and the International Energy Agency agree that CCS is one of the most important low-carbon technologies required to achieve societal climate goals at the lowest cost.
The company has an equity share in about one-fifth of global CO2 capture capacity and has captured approximately 40 percent of all the captured anthropogenic CO2 in the world.
ExxonMobil Low Carbon Solutions will also leverage ExxonMobil’s experience in the production of hydrogen which, when coupled with CCS, is likely to play a critical role in a lower-carbon energy system. Other technology focus areas in ExxonMobil’s low carbon portfolio will be added in the future as they mature to commercialization.
Darren Woods, chairman and chief executive officer, said: “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 80 percent of global CO2 emissions.
“We have the expertise that can help bring technologies to market and make a meaningful difference.”
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.
New CCS projects and partnerships under evaluation include; multiple CCS projects along the US Gulf Coast, expansion of the La Barge CCS facilities in Wyoming, interest in the Port of Rotterdam CO2 Transportation Hub and Offshore Storage project in the Netherlands, a joint venture in the SEGAL system in northeast Scotland, and joint ventures with Qatar Petroleum that operate a CCS project with an annual capacity of 2.1 million tonnes at Ras Laffan.
The new projects will complement ExxonMobil’s current carbon capture capacity in the United States, Australia and Qatar, which totals about 9 million tonnes per year, the equivalent of planting 150 million trees every year.
ExxonMobil is also collaborating with multiple partners across industry, academia and government to advance carbon capture technologies to reduce costs and enhance scalability.