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Exxon launched the idea of ​​a $ 100 billion private and public carbon collection center, the largest of its kind.


Exxon Mobil has come up with a proposal for a private private project that would capture carbon dioxide emissions from US petrochemical plants and bury them deep in the Gulf of Mexico.

If implemented, it would be the world’s largest carbon capture and sequestration effort.

Exxon
XOM,
-2.11%

said they need “$ 100 billion or more” from companies and government agencies for a project expected to store 50 million tons of CO2 by 2030, with capacity likely to double by 2040. .

“It will need government and private sector funding, as well as enhanced legal and regulatory frameworks that allow for investment and innovation,” Exxon said.

Joe Blommaert, president of Exxon’s Low Carbon Solutions business, made the announcement in a blog post. In just a few months of work, his role at America’s largest fossil fuel company meant turning carbon capture into a money-making business and securing the future of a multi-energy mix. form for an industry that is under pressure to adapt.

Oil and gas concerns have fueled incentives to build carbon capture technology in large part because the process is supposed to allow them to continue pumping fossil fuels and remains relevant to the Biden administration push net emissions to zero.

Republicans promoting climate change laws have emphasized the important role of capturing carbon as a way to reduce emissions. Environmental advocates are worried that capturing carbon will change the focus from renewable energy. They argue that the United States will not achieve its major emissions reduction targets without significantly reducing the burning of fossil fuels.

The Biden administration has indicated that it is ready to increase incentives for carbon capture in the Made In America Tax Plan announced earlier this month.

Exxon has not said how much it will spend on the project. Last year, the company halted a smaller, $ 260 million carbon capture project in Wyoming due to the economic slowdown from COVID-19.

This is not the only oil and gas concern that promotes carbon capture.

Chevron Corp.
CVX,
-1.87%

is working with Microsoft Corp.
MSFT,
-0.19%
,
Schlumberger New Energy oil field service company
SLB,
-4.82%

and Clean Energy System privately organized building a carbon capture plant in California.

The ability of powers such as Exxon, Chevron and other Big Oil competitors to scale up carbon capture is part of the appeal to proponents of the technology.

Read: Major banks, including JPMorgan and Citi, have invested $ 3.8 trillion in fossil fuels since the Paris Agreement

Exxon’s shares have risen 34% in the past year and are so far in 2021. As of now, Chevron shares have risen about 20% in 2021 and up 24% over the past year.

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