- ExxonMobil says carbon capture will be a $2 trillion market by 2040
- The company has come under pressure from interested parties to address its large emissions impact
- It also recently announced a $3 billion investment in CCS projects
Exxon is going after what it says is a $2 trillion carbon capture market. During an investor presentation on Wednesday, CEO of ExxonMobil Darren Woods said enhancements in the CCS technology and a “growing market need” pose a unique opportunity for Exxon. He also mentioned that Exxon supports the goal of reaching net-zero emissions.
Exxon Carbon Capture Solutions
The company recently announced a $3 billion investment in new carbon capture and storage (CCS) projects over the next 5 years. The amount is less than 5% of the company’s capital budget over that period. The change has been driven mainly by growing pressure from investors to adapt to a carbon-constrained world.
Exxon is counting on carbon capture and storage as a primary way for achieving its greenhouse gas reduction goals. The company has been using the technology for decades but so far mainly to extract more oil from the ground. It claims government support is still needed to make the permanent storage process more viable.
Now, Exxon is organizing all of its carbon capture projects in the pipeline – 20 so far, in a new business called Low Carbon Solutions (LCS). LCS’s goal is to put forward plans for CCS opportunities around the world. The US Gulf Coast and Southeast Texas are some of the places assessed by Exxon. As announced, they hold the potential to collect “millions of tons” of CO2 from industrial sources for storage.
ExxonMobil, just like many other oil giants, is pressured to make urgent steps as environmentalists and investors demand more climate change actions. The company seems to have realized the potential here and is ramping up efforts to capture a large market share.