Exxon (XOM US): Low Carbon Commitment – September 2024

“Exxon Mobil’s(XOM) head of low carbon initiatives presented slides last week(first week of September 2024) on their plans and targets in the segment.

High level, XOM has allocated $20 bn of capital through 2027 to the venture, with half to decarbonizing internal operations, and the other half to growing 3rd party businesses. Throughout the funding, XOM remains committed to a mid-teens return on investment.

The focus of projects will be towards four main buckets: carbon capture and storage, hydrogen, lithium, and renewable fuels. XOM expressed a focus on the molecule side of the equation, rather than the electron, to stick with core competencies. The near term priority is CCS in the US Gulf Coast. Exxon Mobil is confident in the success of this project as they have the three key criteria – emissions, storage, and the infrastructure. At Baytown, along with the CCS will be a hydrogen plant (1 Bcf/d ultimate target, start up 2029). The final piece to get that towards FID is supporting policy from 45V credits. XOM underscored the importance of supportive policy noting that 45V credits will enable the hydrogen project to move ahead and 45Q will enable the CCS project; next steps is “broader policy that creates a market for carbon abatement and will drive a more market driven approach to the growth of these markets”.“

Source: Exxon Mobil
BBB Farms does not claim ownership of this information.