Energy Efficiency, GHG Emissions, Industrial - December 11, 2023
ExxonMobil Boosts Emissions Investments
ExxonMobil will pursue over $20 billion in lower emissions opportunities through 2027, up $3 billion. The move represents the energy company's third increase in the last three years.
These projects are in addition to the company’s recent $5 billion all-stock acquisition of Denbury, which expanded carbon capture and storage opportunities through access to a CO2 pipeline network in the U.S.
The company is pursuing a portfolio of opportunities in lithium, hydrogen, biofuels, and carbon capture and storage that could lower third-party emissions by more than 50 Mta by 2030.
These lower emissions solutions help address climate change and closely align with ExxonMobil’s competitive advantages and core capabilities. Approximately 50% of the planned investments support building the company’s Low Carbon Solutions business, which reduces customers’ GHG emissions.
“We remain committed to providing the energy and products that raise living standards around the world while building a new business to reduce emissions in hard-to-decarbonize parts of the economy,” said Darren Woods, chairman and CEO, in a statement. “We continue to see more opportunities to harness our technology, scale, and capabilities to implement real solutions to lower emissions and to profitably grow our Low Carbon Solutions business. Success in accelerating emission reductions requires the development of nascent markets. We need technology-neutral durable policy support, transparent carbon pricing and accounting, and ultimately, customer commitments to support increased investment. We’re actively advocating for each of these areas so we can grow a profitable, and ultimately large, low carbon business.”
ExxonMobil is developing a position in lithium and utilizing its upstream skills, such as geoscience, reservoir management, and efficient drilling. It also taps the company’s downstream capabilities in fluid processing and extraction to separate the lithium from the brine.
The company began the first phase of lithium production in southwest Arkansas, an area known to have large, highly concentrated lithium deposits. The first production is expected in 2027. By 2030, ExxonMobil aims to produce enough lithium to supply the manufacturing needs of approximately 1 million EVs per year.
In the Permian Basin, the company is on track to reach net-zero emissions for unconventional operations by 2030.
The company has made progress in executing its plan to reduce upstream-operated GHG emissions intensity by 40% to 50% by 2030, compared with 2016 levels, having already achieved approximately half of this planned reduction.
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