Exxon Pumping $15B+ Into Lower Emission Initiatives

Exxon Pumping $15B+ Into Lower Emission Initiatives
A significant share of the spending will be directed towards ExxonMobil's Low Carbon Solutions business.

Over the next six years, ExxonMobil (NYSE: XOM) plans to invest more than $15 billion on lower greenhouse gas emission initiatives, the company’s chairman and CEO, Darren W. Woods, announced in a statement posted on ExxonMobil’s website Tuesday.

“This significant increase in spending will further accelerate efforts to reduce greenhouse gas emissions from our operated facilities,” Woods said in the statement.

“To that point, we are on track to meet our 2025 emission-intensity reduction goals by the end of this year – four years earlier than anticipated,” Woods added.

“As a result of our progress, we’re working on even more aggressive reduction plans that are consistent with our support for the goals of the Paris Agreement, the U.S. and European Union’s Global Methane Pledge, as well as the U.S. Methane Emissions Reduction Action Plan announced last week,” the ExxonMobil head went on to say.

A significant share of the spending will be directed towards ExxonMobil’s Low Carbon Solutions business, Woods noted. This segment is said to be focused on reducing greenhouse gas emissions from “hard-to-decarbonize” sectors such as heavy industry, commercial transportation and power generation.

“We see tremendous opportunities to use our technology and expertise in carbon capture and storage, hydrogen and biofuels to support meaningful reductions in global emissions,” Woods said in the statement.

“We expect those opportunities to grow as policy support for low-carbon solutions increases,” he added.

In the statement, Woods highlighted that ExxonMobil is the world leader in carbon capture, adding that the company has captured more human-made CO2 than any other business. 

Earlier this month, ExxonMobil announced that it and Petronas had signed a memorandum of understanding to collaborate and jointly explore potential carbon capture and storage technologies projects in Malaysia. During the same month, the company announced that it and Pertamina would evaluate carbon capture and storage in Indonesia.

ExxonMobil is one of the world’s largest publicly traded energy providers and chemical manufacturers, according to its website. Last month, the company announced estimated third-quarter 2021 earnings of $6.8 billion. Quarterly earnings increased by $7.4 billion versus 2020 on improved demand and strong operations, the company noted.

To contact the author, email andreas.exarheas@rigzone.com

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