Sylvie Willis
ExxonMobil, the world's largest publicly traded oil company, has faced criticism for its stance on global warming and its impact on the environment. The company has been ranked as a top contributor to greenhouse gas emissions and was a notable denier of climate change until 2014. However, ExxonMobil has committed to reducing emissions and is investing in alternative fuels. The company spends over $1 billion a year on renewable energy research, exploring lower-emission fuel options, including advanced biofuels, synthetic fuels, and electric vehicles. They are also working with partners to develop and deploy these solutions, such as their collaboration with Porsche to test eFuels, which could significantly reduce greenhouse gas emissions from passenger vehicles. While ExxonMobil's efforts towards sustainability are promising, it is important to consider the scale and pace of their initiatives in comparison to the urgency of the climate crisis.
| Characteristics | Values |
|---|---|
| Amount spent on research | $1 billion a year |
| Number of research projects | Over 100 |
| Research focus | Algae biofuels, biodiesel from agricultural waste, carbonate fuel cells, new ways to manufacture plastic that produce less carbon dioxide |
| Partner universities | 80 |
| Collaborating companies | Porsche, Renewable Energy Group, FuelCell Energy, Georgia Institute of Technology, Clariant, Global Clean Energy |
| Goal | To reduce emissions in hard-to-decarbonize sectors such as heavy industry, commercial transportation, and power generation |
| Recent developments | Started drilling for lithium in the US State of Arkansas, signed a preliminary agreement to supply lithium to SK for the manufacture of lithium-ion batteries, expanded agreement with Global Clean Energy to purchase up to 5 million barrels per year of renewable diesel |
| Emissions reduction target | Zero emissions from US Permian Basin operations by 2030, eliminate global GHG emissions from all operations by 2050 |
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What You'll Learn
ExxonMobil's spending on renewable energy research
ExxonMobil has faced criticism for its environmental record and its history of climate change denial. However, the company has committed to reducing greenhouse gas emissions and is investing in renewable energy research.
In 2017, it was reported that ExxonMobil spends around $1 billion a year on renewable energy research, which amounts to less than 1% of their profits. This money goes towards a variety of research projects on environmentally friendly technologies, including algae biofuels, biodiesel made from agricultural waste, and carbonate fuel cells. ExxonMobil is also researching new ways to manufacture plastic that produce less carbon dioxide.
The company has expanded its agreement with alternative fuels developer Global Clean Energy to purchase up to 5 million barrels per year of renewable diesel. Additionally, ExxonMobil is working with Porsche to test eFuels, a synthetic product made from hydrogen that can reduce greenhouse gas emissions from passenger vehicles by up to 85%.
ExxonMobil's Low Carbon Solutions division, formed in 2022, aims to lower emissions in sectors such as heavy industry, commercial transportation, and power generation using lower-emission fuels, hydrogen, and carbon capture and storage. The division conducts research on clean energy technologies, including algae biofuels and biodiesel made from agricultural waste.
While ExxonMobil has faced criticism for its past actions and denial of climate change, it appears to be taking steps towards reducing emissions and investing in renewable energy research. The company's commitments and investments in this area suggest a shift towards a future where fossil fuels are less dominant.
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The company's alternative energy division, Low Carbon Solutions
ExxonMobil's alternative energy division, Low Carbon Solutions, is focused on identifying and delivering high-impact projects that can help decarbonize the world. The company is leveraging its expertise and scope to offer tailored solutions to customers across various industries, including manufacturing, power, and transportation.
Low Carbon Solutions is committed to reducing carbon emissions and providing innovative solutions that minimize disruption to operations. In the manufacturing sector, they offer carbon capture and storage, as well as fuel-switching to lower-carbon hydrogen. They also assist in implementing large-scale solutions for the power generation sector to ensure a stable supply of power while reducing emissions.
The transportation sector is another key focus area for Low Carbon Solutions. Leveraging their long-standing relationships in this industry, they are working to lower transportation emissions by developing lower-emission fuels. ExxonMobil is exploring a range of options, including second-generation biofuels and synthetic fuels created using hydrogen and captured carbon dioxide to form methanol. These lower-emission fuels have high energy density, making them suitable for heavy-duty transportation.
Additionally, ExxonMobil is actively supporting initiatives to reduce consumer emissions from the use of their products in transportation. This includes research collaborations with partner universities and companies to improve efficiency by addressing both the fuel and vehicle as a system. They are also working with Porsche to test eFuels, synthetic products made from hydrogen, which could significantly reduce greenhouse gas emissions from passenger vehicles.
ExxonMobil's Low Carbon Solutions division is committed to investing in lower-emission technologies and pursuing significant investments in this area. They are also focused on molecule management to scale a portfolio of lower-emission energy solutions. By leveraging existing infrastructure and client bases, particularly in regions like the U.S. Gulf Coast, they aim to drive cost-effective decarbonization.
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ExxonMobil's stance on climate change
ExxonMobil, the largest US-based oil and gas company, has faced widespread criticism for its stance on climate change. Notably, between the 1980s and 2014, ExxonMobil was a notable denier of climate change, despite its own scientists accurately projecting and modelling global warming due to fossil fuel burning. During this period, the company funded research that supported the consensus that fossil fuels contribute to global warming.
In 2014, ExxonMobil publicly acknowledged the existence of climate change and has since made several climate pledges. For instance, in November 2021, the company committed to increasing expenditures for projects expected to reduce GHG emissions to $15 billion by 2027. The following month, it pledged to achieve zero emissions from its operations in the US Permian Basin by 2030. In January 2022, it committed to eliminating global GHG emissions from its operations by 2050.
ExxonMobil has also expressed nominal support for a carbon tax, although this support is weak, as the company believes the tax will be challenging to implement. Despite these pledges and expressions of support, ExxonMobil's response to climate change has been criticised as slow and inadequate.
In terms of concrete actions, ExxonMobil has taken some steps towards researching and developing lower-emission fuel alternatives. The company has expressed excitement about designing lower-emission transportation fuels and is exploring various options, including second-generation biofuels and synthetic fuels created using hydrogen and captured CO2. ExxonMobil is also working with Porsche to test eFuels, synthetic fuels that could significantly reduce greenhouse gas emissions from passenger vehicles.
Additionally, the company has expanded its agreement with alternative fuels developer Global Clean Energy to purchase up to 5 million barrels per year of renewable diesel. ExxonMobil is also collaborating with Renewable Energy Group to convert agricultural waste into biofuels and with FuelCell Energy to research and develop carbonate fuel cells for carbon capture and electricity generation.
While these initiatives demonstrate some commitment to reducing emissions, ExxonMobil's environmental record remains controversial. The company has been ranked highly among corporations emitting airborne pollutants and greenhouse gases, and its historical denial of climate change has incited movements like "'Exxon Knew'" to hold the company accountable for climate-related incidents.
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The company's collaboration with Porsche
ExxonMobil and Porsche have been working together for over 20 years on researching and developing innovative engine oils. The two companies have a strong history of collaboration, with ExxonMobil contributing significantly to the performance of Porsche's racing vehicles.
The partnership between the two companies has resulted in numerous victories in prestigious motor racing championships, including long-distance classics such as Le Mans and Daytona. Every Porsche car leaves the factory filled with Mobil 1 engine oil with 0W-40 viscosity, and this has been the case for over a million cars since the partnership began.
In addition to their work in motorsport, ExxonMobil and Porsche have also collaborated on the development of production engines. Porsche's Executive Board for Research and Development, Dr Michael Steiner, has emphasised the importance of ExxonMobil as a "close and important cooperation partner" in this area.
The two companies have also been working together to test advanced biofuels and renewable, lower-carbon eFuels. This collaboration is part of a new agreement to find pathways toward potential future consumer adoption of these alternative fuels. The specially formulated Esso Renewable Racing Fuel was tested in Porsche's high-performance motorsports engines at the Porsche Mobil 1 Supercup 2021.
The Esso Renewable Racing Fuel is a blend of primarily advanced biofuels, with the second iteration transitioning to eFuel. eFuels are synthetic fuels that can be produced using renewable electricity to generate hydrogen. When combined with captured carbon, they produce lower-carbon fuels. This collaboration between ExxonMobil and Porsche is an important step in helping countries reach their climate goals and reducing emissions in the transportation sector, which accounts for approximately 25% of global energy-related CO2 emissions.
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ExxonMobil's environmental record
ExxonMobil, the largest US-based oil and gas company, has faced criticism for its environmental record and impact on global warming. The company has been responsible for many oil spills, including the 1989 Exxon Valdez oil spill in Alaska, considered one of the world's worst in terms of environmental damage. As of 2020, ExxonMobil has been responsible for over 3,000 oil spills and leakages.
In 2018, the Political Economy Research Institute ranked ExxonMobil tenth among American corporations emitting airborne pollutants and thirteenth for emitting greenhouse gases. A 2017 report placed the company as the fifth-largest contributor to greenhouse gas emissions from 1988 to 2015. ExxonMobil has also been criticised for its history of climate change denial, despite officially acknowledging the existence of climate change in 2014.
However, the company has taken steps towards sustainability and reducing emissions. ExxonMobil is exploring lower-emission fuel options, including advanced biofuels, synthetic fuels created with hydrogen and captured CO2, and eFuels, a synthetic product made from hydrogen that could reduce greenhouse gas emissions from passenger vehicles by up to 85%. The company is also working with alternative fuels developer Global Clean Energy and has plans to produce 20,000 barrels per day of renewable diesel by 2024, potentially reducing emissions in Canada by about 3 million metric tons annually.
ExxonMobil is investing $1 billion per year in emerging technologies and research and development efforts, aiming to develop breakthrough technologies that positively impact the environment. They employ over 2,200 PhD scientists and 5,000 employees in research and technology divisions worldwide. The company is also pursuing up to $30 billion in lower-emission investments between 2025 and 2030 and is on track with its 2030 emission-intensity reduction plans.
ExxonMobil uses its Environmental Performance Indicator (EPI) process to assess its performance and support continuous improvement. They have also completed the testing of Controlled Freeze Zone™ (CFZ) technology, which freezes carbon dioxide produced from underground natural gas reservoirs for more efficient separation.
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Frequently asked questions
ExxonMobil spends over $1 billion a year on researching renewable energy.
ExxonMobil is researching algae biofuels, biodiesel made from agricultural waste, carbonate fuel cells, and new ways to manufacture plastic that produce less carbon dioxide.
ExxonMobil is working with Porsche to test eFuels, a synthetic product made from hydrogen. ExxonMobil is also working with Renewable Energy Group to use microbes to convert inedible crop residue into biofuels.
