ExxonMobil has laid out plans to generate tens of billions of dollars from low-carbon businesses, such as biofuels, hydrogen, and carbon capture, within a decade. According to Dan Ammann, the executive in charge of Exxon’s low-carbon business, these ventures could eventually be worth “hundreds of billions of dollars” and become larger than Exxon’s base business as the world approaches net-zero emissions. However, bringing down the costs of hydrogen fuel and carbon capture and receiving government incentives, such as carbon taxes or economic subsidies, are necessary to achieve this growth.
Exxon’s critics argue that its continued investment in fossil fuels runs counter to international efforts to slash greenhouse gas emissions and that it has not proven it can build large-scale carbon capture and hydrogen projects. Nevertheless, Ammann is optimistic, stating that the low-carbon business is starting to build “momentum.”
ExxonMobil is aiming to generate tens of billions of dollars from its low-carbon businesses, such as biofuels, hydrogen, and carbon capture, within the next decade, according to a top executive at the company. The oil producer has given its most detailed view yet of its energy transition plans, explaining that it expects to profit from carbon-cutting technologies even as it expands oil and gas output.
While the firm’s share price has increased due to bumper 2022 profits, critics argue that continued investment in fossil fuels runs counter to efforts to reduce greenhouse gas emissions. Exxon is planning to spend $17bn on the low-carbon business up to 2027, or around 10% of its spending on fossil fuel projects over the same period.
