Exxon is advancing a pilot direct air capture (DAC) project with in-house expertise after ending a partnership with carbon removal company Global Thermostat.
As reported by Energy Intelligence, Exxon will be working on its own DAC project after concluding a three-year collaboration with the U.S.-based Global Thermostat. Back in 2019, the two companies signed an agreement to work together on direct air capture technology and extended the partnership twice – in 2020 and 2022.
The partnership, which expired in 2023, was not renewed this year, Energy Intelligence reported. Exxon and Global Thermostat did not comment on the reason behind the decision.
According to a Bloomberg report from 2021, Global Thermostat allegedly did not pay some of its bills on time and struggled to achieve certain technological milestones. Founding CEO Graciela Chichilnisky left the company in 2021 and was replaced by Enphase’s previous CEO Paul Nahi last September.
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Lydia Johnson, vice president of product development for Exxon Mobil Low Carbon Solutions, told Energy Intelligence the oil and gas corporation’s in-house DAC pilot is still in the early stages.
One of the challenges ahead for DAC technology is cost. “It’s very expensive, it’s way out there,” Johnson told Energy Intelligence. “So our challenge is to understand that and get our cost down.”
Exxon CEO Darren Woords has refered to direct air capture as the “holy grail” with the company previously indicating that its current cost for removing one ton of CO2 from the atmosphere is between $600 and $1,000, and is looking to cut that in half.
Other oil and gas giants that pursue or research DAC technology include Occidental, Chevron and Shell.
Read more: Global Thermostat Attracts New Investor Sumitomo Corporation
