Exxon plans to invest $3 billion in lower-emission technologies
Exxon Mobil Corp has established a division to commercialize the technology that helps minimize carbon emissions, as the U.S. oil giant is looking to step up measures against climate change in the face of growing criticism from investors and activists.
The change comes as Exxon tries to polish its environmental credentials as it joins in a proxy battle with the Engine No. 1 hedge fund, which aims to nominate members to the board of the oil firm and move towards a future based on more renewables.
By 2025, the oil giant said it would spend $3 billion in lower-emission technologies, with plans to reduce the severity of its greenhouse gas emissions from its oilfield by 15-20 percent from 2016 levels.
“We have the expertise that can help bring technologies to market and make a meaningful difference,” said Exxon Chief Executive Darren Woods.
Initially, Exxon said its Low Carbon Solutions would concentrate on carbon capture, noting that it was looking at carbon dioxide storage in underground caverns throughout the United States Gulf Coast and offshore gas reserves in the depleted North Sea, among other alternatives.
The United Nations has stated that carbon reduction technologies would be required in order to reduce the rise in global warming to no more than 1.5 degrees Celsius, the target of the 2015 Paris Climate Agreement.
Exxon's efforts will clash with Oxy Low Carbon Ventures of Occidental Petroleum Corp, which aims to build the largest facility ever to draw carbon dioxide out of the atmosphere.