Exxon forecasts a $4 trillion carbon capture market by 2050

HOUSTON, April 19 (Reuters) – Exxon Mobil Corp. (XOM.N) estimates there will be a $4 trillion market by 2050 to capture carbon dioxide and store it underground, the company said in a filing on Tuesday.

That’s about 60% of the $6.5 trillion market the US’s largest crude producer estimates for oil and gas by then.

Carbon capture is an important emission reduction technology, according to the International Energy Agency (IEA). It involves capturing CO2 from fuel combustion or industrial processes, transporting it by ship or pipeline, to be stored underground in geological formations or used as a resource to create products.

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An Exxon Mobil Corp logo is seen at the Rio Oil and Gas Conference and Exhibition in Rio de Janeiro, Brazil, September 24, 2018. REUTERS/Sergio Moraes

Big oil companies have been investing to make carbon capture and storage (CCS) a relevant business, as international bodies such as the Intergovernmental Panel on Climate Change (IPCC) point to the technology as key to mitigating the effects of global warming. .

Exxon is under public pressure to reduce its total emissions, as its energy transition strategy does not include renewable energy sources such as solar and wind. It recently hired Dan Ammann, who led General Motors Co’s (GM.N) Cruise autonomous driving unit until December, to lead its Low Carbon business from May 1.

US oil producer Occidental Petroleum (OXY.N), which is developing the world’s largest project to extract CO2 from the air, previously estimated that CCS could become a $3-5 trillion global industry. The technology could generate as much profit and cash flow for Occidental as oil and gas does today, CEO Vicki Hollub said at a conference in March.

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Reporting from Sabrina Valle; Edited by Aurora Ellis

Our standards: the Thomson Reuters Trust Principles.

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