Exxon focusing on direct air capture of CO2 to reach net zero emissions
- September 20, 2023
- Posted by: Quatro Strategies
- Categories: ESG & Renewable Energy, Oil & Gas, United States
Exxon Mobil Corp, the largest U.S. oil company, is investing in technology for direct air capture (DAC) of carbon dioxide (CO2) as part of its low-carbon solutions business. The company views DAC as a critical component in achieving a net-zero future. Direct air capture involves extracting CO2 directly from the atmosphere, a process seen as essential in limiting global warming by organizations like the United Nations Intergovernmental Panel on Climate Change (IPCC).
Matthew Crocker, Senior Vice President of Product, Strategy, and New Assets in Exxon’s low carbon solutions business, stated that if the high costs associated with DAC can be reduced and the technology can operate efficiently at scale, Exxon could become a major player in the nascent DAC industry. Currently, the costs of DAC range from $600 to $1,000 per ton of carbon removed.
Exxon’s DAC efforts could be bolstered by its carbon capture and storage (CCS) business, which involves trapping emissions underground. The company extended a joint research agreement with DAC developer Global Thermostat to accelerate the development of DAC technology for full-scale deployment.
Exxon’s broader energy transition strategy centers on reducing carbon emissions from its operations and focusing on CCS, hydrogen, and biofuels, rather than investing heavily in renewable energy sources like solar and wind. While the company is investing in reducing its emissions and CCS, it does not plan to invest in building electric vehicle (EV) charging stations, as it believes this isn’t an area where it can bring significant competitive advantage.
By QUATRO Strategies International Inc.
QUATRO Strategies International Inc. is the leading business insights and corporate strategy company based in Toronto, Ontario. Through our unique services, we counsel our clients on their key strategic issues, leveraging our deep industry expertise and using analytical rigor to help them make informed decisions to establish a competitive edge in the marketplace.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
TotalEnergies set to invest $9 billion in Suriname offshore oil and gas project
French energy company TotalEnergies is embarking on a project to develop a $9 billion oil and gas venture in Suriname’s offshore region. This marks a significant milestone for Suriname, potentially establishing its inaugural commercial offshore project.
Risk appetite tiptoes back as U.S. leads $11 billion equity inflow
Risk appetite flickered back to life in the week to October 22, with global equity funds pulling in their strongest haul in three weeks as investors latched onto the prospect of a thaw in U.S.-China relations and a string of upbeat U.S. earnings. Flow tallies show just over $11 billion moving into global stock funds, a clear reversal from the risk-off tone that had prevailed earlier in the month.
The United States did most of the heavy lifting: after two weeks of redemptions, U.S. equity vehicles absorbed roughly $9.7 billion, helped by stronger prints from marquee tech and industrial names and the hope that an upcoming Trump-Xi encounter could place at least a soft floor under trade tensions. Asia joined the updraft with a $2.8 billion inflow, while Europe went the other way, shedding about $2.25 billion as growth jitters and political noise continued to deter buyers.
U.S. explores critical minerals partnership with DR Congo to counter Chinese dominance
The United States has signaled openness to exploring critical minerals partnerships with the Democratic Republic of Congo (DRC), following discussions initiated by a Congolese senator proposing a minerals-for-security deal. The DRC, home to vast reserves of cobalt, lithium, and uranium, has been battling the Rwanda-backed M23 rebels, who have seized significant territory this year.
The U.S. is willing to discuss collaborations in the sector in alignment with the Trump administration’s “America First” agenda. Washington has been working to enhance American private sector investment in the DRC to develop mining resources in a responsible and transparent manner. This aligns with broader U.S. efforts to diversify critical mineral supply chains away from Chinese dominance and secure resources needed for advanced technologies, including electric vehicles and renewable energy.