EXXONMOBIL TIRELESSLY WORKING ON GROUND-BREAKING TECHNOLOGY ON CCUS TO CAPTURE A $4 TRILLION OPPORTUNITY

ExxonMobil (NYSE: XOM) envisions carbon capture, utilization, and sequestration (CCUS) as pivotal in mitigating global emissions. 

source: Google 

• The company anticipates this technology evolving into a substantial global industry, potentially matching the scale of the oil and gas market, with an estimated market size of $4 trillion by 2050.
• ExxonMobil is actively investing in the development of a CCUS platform, collaborating with FuelCell Energy (NASDAQ: FCEL) on a groundbreaking technology. 

This innovation aims to capture carbon emissions from industrial sites while simultaneously generating energy, offering potential cost and emission reductions. These efforts represent just one facet of ExxonMobil's broader strategy to establish a lucrative lower-carbon energy business.

A GROUND-BREAKING TECHNOLOGY 

ExxonMobil's affiliate intends to construct a pilot plant within the Rotterdam Manufacturing complex, aiming to assess carbonate fuel cell (CFC) technology. 

This trial initiative, developed in collaboration with FuelCell Energy, seeks to collect data on technology performance, operability, potential technical challenges, and the associated costs.

Successful results could lead to the adoption of this technology across Exxon's various manufacturing sites.

CFC has the capability to directly capture carbon dioxide emissions from industrial sources and generate valuable co-products such as low-carbon power, heat, and hydrogen. 

According to FuelCell CEO Jason Few, the technology's dual functionality in carbon capture and electricity production marks it as a transformative force for the industry. 

This dual purpose enhances the efficiency of carbon capture and contributes to revenue streams, thereby aiding in the reduction of the overall cost associated with capturing and sequestering carbon dioxide.

Modular technology facilitates seamless adaptation to diverse sites, presenting a cost-effective solution for emissions reduction in various industries.

CONSTRUCTING A CCUS PLATFORM 

Source: Google 

ExxonMobil has consistently increased its investments in lower carbon energy, with the latest update to its long-term strategic investment plan raising the planned spending to $20 billion by 2027.

This marks the third increment since the launch of its lower carbon energy platform three years ago and surpasses the previous target by $3 billion.

The company is allocating 50% of its capital to initiatives aimed at lowering emissions in its current facilities, such as the Rotterdam pilot project. The remaining funds are being used to develop various energy platforms with reduced carbon footprint, including CCUS, hydrogen, biofuels, and lithium.

Exxon is actively engaged in creating comprehensive carbon capture, utilization, and storage (CCUS) solutions. Collaborating with major industrial entities, it aims to transport captured carbon to its underground sequestration facilities designed for long-term storage, supported by significant commercial contracts.

Exxon substantially improved its capacity to transport and store carbon dioxide through the acquisition of Denbury Resources in the recent past, investing close to $5 billion. This oil company possessed the nation's largest carbon dioxide pipeline network and ten strategically positioned sequestration sites. This strategic move is poised to expedite Exxon's delivery of decarbonization services to customers in the upcoming years.

Exxon anticipates that Carbon Capture, Utilization, and Storage (CCUS) could evolve into a revenue source generating billions annually. In contrast to its traditional oil and gas operations, the income from CCUS would stem from enduring contracts, offering a consistent and foreseeable revenue stream, thereby mitigating earnings volatility.

A POTENTIAL SOLUTION 

Exxon holds the belief that Carbon Capture, Utilization, and Storage (CCUS) technology will be essential for promoting a world with reduced carbon emissions. This perspective leads Exxon to envision the potential for CCUS to evolve into a highly profitable global industry. If Exxon's prediction is accurate, CCUS could emerge as a significant catalyst for growth in the energy sector in the foreseeable future, presenting a compelling long-term investment prospect.

source: yahoo.com

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