ExxonMobil to create new low-carbon business unit
ExxonMobil (NYSE: XOM) yesterday unveiled plans to start a new company to market its portfolio of low-carbon technologies. ExxonMobil Low Carbon Solutions will initially focus on carbon capture and storage, which extracts carbon dioxide from the atmosphere and injects it into the ground. This activity will also focus in the future on other low carbon technologies, including hydrogen.
ExxonMobil plans to advance more than 20 new carbon capture and storage (CCS) projects around the world over the next few years. It plans to invest $ 3 billion in low-emission energy projects by 2025.
The company has several projects under development. For example, he is evaluating several CCS projects that have the potential to collect millions of tonnes of carbon dioxide from industrial sources along the US Gulf Coast, which it would store in onshore and offshore geological formations. Future new projects will complement the company’s existing carbon capture capacity in the United States, Australia and Qatar, which currently captures 9 million tonnes per year, the equivalent of planting 150 million trees.
ExxonMobil is the latest oil giant to increase its investments in low-carbon energy solutions. But at $ 3 billion through 2025, that’s a small part of its overall program of capital spending (up to $ 25 billion per year) during that time. To compare, PA (NYSE: BP) plans to cut oil and gas business by 40% over the next decade while spending up to $ 5 billion a year to build a leader renewable energy power company.
As the economy shifts to lower carbon fuel sources, Exxon will need to continue to shift spending away from fossil fuels or risk falling behind and underperforming its competitors.
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