Exxon Mobil (NYSE: XOM) has confirmed that it will expand the carbon capture plant at LaBarge, Wyoming with a $400 million investment.
The installation is expected to be operational in 2025 and should be able to capture up to 1.2 million metric tons of CO2 every year. This is 20% above the previously announced capacity at the site.
Exxon slowed down work on the project in 2020 as the global pandemic impacted its timeline, but with this new confirmation the 2025 completion deadline is expected to be achieved.
The oil company is experiencing pressure both internally and externally to act on reducing its carbon emissions footprint.
While the external pressure comes from climate organizations and the current White House administration, three board seats were also won by the Engine No. 1 fund.
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The LaBarge plant has been producing helium and natural gas that both release carbon dioxide during their extraction.
Approximately 7 millions of CO2 annualy are prevented from entering the atmosphere at the plant at this point. This makes it one of the largest operational carbon capture plants globally.
A large volume of that is sold as a commodity to other oil companies in the area for enhanced oil recovery. Once operational the plant will allow Exxon to reduce its upstream emissions with 3% through carbon capture.
