Navigating a Path to Lower-Carbon Solutions: Exxon Mobil and Chevron Embrace Hydrogen and Carbon Capture
Key Ideas
  • Exxon Mobil and Chevron are focusing on hydrogen and carbon capture as key components in reducing global greenhouse gas emissions, though government support varies in project development.
  • Exxon's Baytown low-carbon hydrogen project and Chevron's Advanced Clean Energy Storage project in Delta, Utah showcase advancements in the use of hydrogen for industrial purposes and energy storage.
  • Both companies emphasize the importance of policy frameworks that set carbon intensity standards, promote technology agnostic approaches, and aim for a future where energy sources can compete without government subsidies.
  • Exxon Mobil expects significant growth from its Low Carbon Solutions business, including hydrogen, carbon capture, and lithium, with a projected $2 billion in earnings growth by 2030.
The article discusses how Exxon Mobil Corp. and Chevron Corp. are navigating towards lower-carbon solutions through their focus on hydrogen and carbon capture. Despite policy uncertainties in the U.S., both energy giants are moving forward with projects aimed at reducing global greenhouse gas emissions. Exxon's Baytown low-carbon hydrogen project plans to produce up to 1 Bcf/d of hydrogen by 2029, while Chevron is advancing with the Advanced Clean Energy Storage project in Delta, Utah, expected to convert renewable energy into hydrogen for storage. Both companies stress the importance of policy frameworks that establish carbon intensity standards and promote technology agnostic approaches to create a competitive energy market without government subsidies. Furthermore, they highlight the need for offtake agreements with customers to support the advancement of these projects. Additionally, both companies are progressing in carbon capture projects, with Exxon having a significant lead in CO2 capture and storage capabilities. Exxon Mobil anticipates substantial earnings growth from its Low Carbon Solutions business, which includes hydrogen, carbon capture, and lithium, projecting around $2 billion by 2030. Overall, the article presents a positive outlook on the efforts of Exxon Mobil and Chevron in embracing innovative solutions to address climate change and transition towards a more sustainable energy future.
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