Exxon To Become Net-Zero Company By 2050

Exxon To Become Net-Zero Company By 2050
Exxon has revealed its ambition to achieve net-zero greenhouse gas emissions for operated assets by 2050.

Supermajor ExxonMobil has revealed its ambition to achieve net-zero greenhouse gas emissions for operated assets by 2050.

Exxon said that the net-zero aspiration applies to Scope 1 and Scope 2 greenhouse gas emissions and builds on its 2030 emission-reduction plans, which include net-zero emissions for Permian Basin operations and ongoing investments in lower-emission solutions, including carbon capture and storage, hydrogen, and biofuels.

“ExxonMobil is committed to playing a leading role in the energy transition and Advancing Climate Solutions articulates our deliberate approach to helping society reach a lower-emissions future,” said Darren Woods, chairman and CEO. “We are developing comprehensive roadmaps to reduce greenhouse gas emissions from our operated assets around the world, and where we are not the operator, we are working with our partners to achieve similar emission-reduction results.”

Exxon’s Outlook for Energy, which is based on current policy and technology trends, continues to be the basis for the company’s business plans and investment decisions. In the Advancing Climate Solutions report, the company outlines how its short- and medium-term business plans are adjustable to developments in policy and technology and how it uses signposts and leading indicators to evaluate the need for any changes in future years.

According to the company, sound government policies will accelerate the deployment of key technologies at the pace and scale required to support a net-zero future. Exxon continues to support an explicit price on carbon to establish market incentives and encourage investments in lower-emissions technologies.

The company is also committed to helping customers reduce their greenhouse emissions by investing in carbon capture and storage, hydrogen, and biofuels. Bio-based feed and plastic waste streams provide further opportunities for lowering greenhouse gas emissions.

“As we invest in these important technologies, we will advocate for well-designed, high-impact policies that can accelerate the deployment of market-based, cost-effective solutions,” added Woods. “We believe our strategy is unique among industry and enables us to succeed across multiple scenarios. We will create shareholder value by adjusting investments between our existing low-cost portfolio and new lower-emission business opportunities to match the pace of the energy transition.”

To help reach net-zero for operated assets by 2050, the company has identified more than 150 potential steps and modifications that can be applied to assets in its upstream, downstream, and chemical operations.

Initial actions already underway prioritize energy efficiency measures, methane mitigation, equipment upgrades, and the elimination of venting and routine flaring. Further high-impact reduction opportunities include power and steam co-generation and electrification of operations, using renewable or lower-emission power. The company expects to finalize detailed roadmaps that address approximately 90 percent of operations-related greenhouse gas emissions by the end of this year, and the remainder will be completed in 2023.

Initial steps to achieve net-zero by 2050 are included in the company’s plans to invest more than $15 billion by 2027 on lower-emission initiatives. Policies further accelerating the development and deployment of lower-emission technologies could provide ExxonMobil with additional investment opportunities.

Exxon’s Advancing Climate Solutions - 2022 Progress Report expands on the company’s 2030 greenhouse gas emission-reduction plans, which are consistent with Paris-aligned pathways, the U.S., and EU’s Global Methane Pledge as well as the U.S. Methane Emissions Reduction Action Plan.

Compared to emission levels in 2016, the time of the Paris Agreement, the 2030 plans include a 20-30 percent reduction in corporate-wide greenhouse gas intensity, which includes 40-50 percent reduction in upstream greenhouse gas intensity, 70-80 percent reduction in corporate-wide methane intensity, and 60-70 percent reduction in corporate-wide flaring intensity.

The 2030 emission-reduction plans are expected to achieve World Bank Zero Routine Flaring by 2030 and reduce absolute greenhouse gas emissions by an estimated 30 percent for the company’s upstream business and 20 percent for the entire corporation. Similarly, absolute flaring and methane emissions are expected to decrease by 60 percent and 70 percent, respectively by 2030.

When final data is collected and analyzed, Exxon expects to report it achieved its 2025 emission-reduction plans as of year-end 2021, including a 15-20 percent reduction in greenhouse gas intensity for its upstream operations, compared to 2016 levels.

To contact the author, email bojan.lepic@rigzone.com

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