Exxon Mobil Corp. proposed a massive $ 100 billion hub to capture carbon dioxide emissions along the US Gulf Coast in Texas, but warned that it would require government funding to pay for it and develop it.
In what would be the world’s largest carbon-carbon and capture project, Exxon, along with a host of private and public partners, would build a facility to collect emissions from refineries, petrochemical plants and other industrial facilities along the Houston Ship Channel, Joe Blommaert , president of Exxon’s new low-carbon company said in a statement blog post.
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Early projections show that such a facility could bury 50 million tons per year under the Gulf of Mexico by 2030, more than any CCS project currently operating globally. Exxon said that figure could double by 2040.
It has long been seen that ancient oil and gas formations in the Gulf of Mexico have the potential to store large amounts of carbon dioxide, but the challenge has paid for it. Under current regulations, it is cheaper to simply let the pollutants float out into the atmosphere. Exxon says the project could significantly reduce the country’s carbon footprint, as long as the government provides businesses with the right financial incentives.
“It will require government and private sector funding, as well as improved regulatory and legal frameworks that enable investment and innovation,” said Exxon.
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The oil company, under pressure from investors for its environmental report and recent financial returns, did not say how much money it would bring in for the project and recently cut its capital budget to the lowest in two decades to protect its $ 15 billion a year. year dividend.
Last year, the company placed a smaller but easier-to-implement carbon capture project in Wyoming on hold due to the economic impact of Covid-19. It would have cost about $ 260 million, or less the 1% of what Exxon represents the Gulf Coast.
Yet carbon capture remains Exxon’s preferred method of reducing emissions as it complements the oil giant’s existing oil and gas business. President Joe Biden’s administration indicated its willingness to boost incentives for the technology in its Made In America Tax Plan released earlier this month.
“We believe CCS should be an important part of the US strategy to meet the Paris goals,” Exxon said in the post. “However, new policies are needed to boost the investment needed to deploy CCS at a pace and scale to meet the goals of the Paris Agreement.”
Updates with comments from Exxon in last paragraph.