Insider Brief:
- ExxonMobil will spend US$30 billion on low carbon technologies by 2030.
- These technologies include carbon capture, biofuels, hydrogen, and lithium extraction.
- ExxonMobil is bucking the trend of other oil and gas firms decreasing their non-fossil fuel investments.
ExxonMobil Bets on Low Carbon Technology Over Renewables
ExxonMobil will spend US$30B by 2030 on “low emissions opportunities” by 2030, according to investment guidance seen by the Financial Times.
For the oil and gas major, “low emissions” means technologies that cut greenhouse gas emissions.
ExxonMobil plans to spend the funds on carbon capture, biofuels, hydrogen, and lithium extraction, the FT reported.
The investment plan by the company had been revised from an earlier version. ExxonMobil, as well as other oil and gas firms, have faced extensive criticism from environmental groups for both increasing their fossil fuel production and extensively lobbying governments to lift restrictions and regulations on fossil fuel activities.
A Contrasting Approach to Industry Peers
The move to increase spending on low-emissions technologies comes as other oil and gas companies, most notably BP, moves away from diversifying into renewables. Norway’s Equinor – formerly known as Statoil – has also reduced its annual guidance on investing in low-emissions technologies from US$3.9 billion to $2.3 billion, FT quotes Woods Mackenzie research as saying.
“ExxonMobil’s low-carbon technologies strategy is gaining momentum at a time when some peers are scaling back,” FT quoted Wood Mackenzie senior vice president of corporate research Tom Ellacott as saying.
“The company is focusing on low carbon technologies in which it believes it has a competitive advantage and has built an attractive pipeline of opportunities in low-carbon hydrogen, carbon capture, and lithium.”
France’s TotalEnergies, however, is spending more on low carbon technologies. It plans to spend US$5 billion in 2025, or 29% of its total budget. Exxon and Shell plan to spend 17%, while BP plans to spend 12%.
Environmental Groups Say More Investment Is Needed
While these figures represent a lot of money, some environmental groups say it’s not enough.
“It’s still woefully short of the capital that needs to deploy if we’re going to make major progress in decarbonizing our collective economies in the next 30 years,” Environmental Defense Fund Senior Vice President of Energy Transition Mark Brownstein said.
