FuelCell Energy (Nasdaq: FCEL) announced on Thursday that its agreement with ExxonMobil (NYSE: XOM) for developing carbon capture technology has been extended until the end of 2022.
This will allow both companies involved to keep working on carbon capture that is specifically designed to work with fuel cells. This is another extension of the partnership which began back in 2016 and provides a longer runway for the technology to achieve commercialization by focusing on several key areas:
- Develop technologies that advance scientific and technical knowledge of fuel cell operating envelope for carbon capture.
- Continue working and prepare for a test of the carbon capture technology on a fuel cell module at a company facility
- Study the potential markets, opportunities and partners for commercializing the technology, as well as identifying willing partners for demonstrations that could turn them into customers
“We are excited to build on the recent achievement of a key technical milestone as we advance toward the goals of a carbon capture demonstration and, ultimately, full scale deployment. We believe carbon capture is an essential requirement toward achieving global climate objectives,” said Jason Few, CEO of FuelCell Energy.
Prasanna Joshi, Vice President of ExxonMobil Technology and Engineering Company also commented by saying: “We are extending our agreement with FuelCell Energy to continue joint development of a novel technology that may accelerate deployment of carbon capture in industrial sectors. Carbonate fuel cell technology is part of our lower-emissions research and development portfolio as we look to identify commercially scalable technologies that can help reduce greenhouse gas emissions from vital sectors of the economy in support of a net-zero future.”
ExxonMobil recently announced that they see the carbon capture market reaching $4 trillion by 2050.
Partnerships like the one with FuelCell, as well as large projects like the potential carbon capture hub near Houston, are allowing Exxon to diversify its portfolio and tap into potentially lucrative revenue streams.