ExxonMobil announced yesterday that it has bought a stake 49.9% stake in Norwegian biofuel company Biojet.
Biojet specializes in converting wood-construction and forest waste into low-carbon biofuels that can be used independently or blended with existing fuels.
The Norwegians have shared plans for five plants that will produce the eco-friendly fuels and expect to start production and deliveries in 2025.
According to the agreement, Exxon will be able to buy up to three milliion barrels annually, which should be covered by the production capacity of the five plants.
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“Using our access at the Slagen terminal, we can efficiently distribute biofuels in Norway and to countries throughout northwest Europe,” said Ian Carr, president of ExxonMobil Fuels and Lubricants Company.
The oil giant seems to be targeting markets in Northern Europe, the EU and the UK with this project. Biofuels will cover the requirements for low-emission fuels from all three jurisdictions and can used in internal-combustion engines without modifications, as well as ships and airplanes.
Biofuel Focus for ExxonMobil
This is not the first investment made by ExxonMobil when it comes to sustainable fuel. The company has been working on R&D for alternative fuels since 2000 and has poured over $10 billion into various initiatives.
Confirming how serious it is about this new direction for the company, it established a separate business last year called Low Carbon Solutions, which is also looking at opportunities in hydrogen and carbon capture.
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A giant $100 billion carbon capture hub in the Houston area has been touted by Exxon and it is reportedly in talks with the US government about making it happen.
Over 50 industrial companies in the Gulf area are reportedly on board with the project and it could capture 50 million tonnes of CO2 every year.