ExxonMobil, the American oil major, announced this Tuesday its ambition to achieve net-zero greenhouse gas emissions from operating assets by 2050. The goal comes along with a plan to reduce the environmental footprint of its major facilities and assets, like those in the Permian Basin.
Firstly, the strategy will only apply to Scope 1 and 2 emissions. One of the key parts of the plan is that Exxon will advance new technologies required to support a net-zero future. Particularly, it plans to further invest in carbon capture and storage, hydrogen, and biofuels.
Moreover, the company will invest in bio-based feed and plastic waste streams; to seize further opportunities in reducing its greenhouse gas emissions footprint. Particularly, the plan from ExxonMobil comes from the company’s Advancing Climate Solutions – 2022 Progress Report; formerly known as the Energy & Carbon Summary.
In addition, the report provides details of how ExxonMobil’s business strategy is resilient when tested against a range of Paris-aligned net-zero scenarios. Notably, the report outlines how its short- and medium-term business plans are adjustable to developments in policy and technology; and how it uses signposts and leading indicators to evaluate the need for any changes in future years.
Darren Woods, chairman, and chief executive officer said about the matter. “ExxonMobil is committed to playing a leading role in the energy transition, and Advancing Climate Solutions articulates our deliberate approach to helping society reach a lower-emissions future.”
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ExxonMobil to invest up to $15 billion to advance new technologies
He also remarked. “We are developing comprehensive roadmaps to reduce greenhouse gas emissions from our operated assets around the world, and where we are not the operator, we are working with our partners to achieve similar emission-reduction results.”
On the other hand, towards its new goal of net zero by 2050; the company has identified more than 150 potential steps and modifications that can help lower emissions in upstream; downstream, and chemical operations. Those are energy efficiency measures, methane mitigation, equipment upgrades, and the elimination of venting and routine flaring.
Furthermore, the company will launch power and steam co-generation and electrification of operations, using renewable or lower-emission power. Overall, the company will invest more than $15 billion by 2027 to advance these initiatives.
Finally, Woods concluded. “We believe our strategy is unique among industry and enables us to succeed across multiple scenarios. We will create shareholder value by adjusting investments between our existing low-cost portfolio and new lower-emission business opportunities to match the pace of the energy transition.”