Pipe Dreams: Part Six in a Series on Carbon Capture
When you think about a clean energy future, you might imagine wind turbines spinning or electric cars zooming quietly down the road. But ExxonMobil has a different idea. In their vision, oil refineries and power plants still operate, but with less carbon pollution.
Exxon’s Carbon Capture Plan
Exxon’s CEO, Darren Woods, believes oil and gas aren’t the problem—it’s the carbon pollution they produce. So, Exxon has proposed a huge project in the Houston area to capture carbon emissions from industrial plants. By 2030, they plan to collect 50 million metric tons of carbon dioxide each year, doubling that by 2040. The captured carbon would be compressed and transported through new pipelines to be stored under the Gulf of Mexico.
A New Industry Takes Shape
This $100 billion project aims to create a new industry focused on capturing and storing carbon. Exxon’s plan includes working with 12 major polluting companies like Chevron and Dow. The project needs a lot of government funding, and Exxon has made progress in securing it.
Congressional Support
Since Exxon announced their plan, Congress has given the Energy Department $20 billion for carbon capture and clean hydrogen projects. They also approved $250 billion in loan guarantees for these technologies. Additionally, a new carbon-capture tax incentive could bring Exxon and its partners over $4 billion a year if they meet their goals.
Controversy and Skepticism
Not everyone is happy about this. Some climate advocates believe paying Exxon to capture carbon is like paying a ransom on the planet. They argue it’s a backward approach because it doesn’t penalize the polluters. Critics also worry that Exxon’s focus on carbon capture is a form of “greenwashing,” distracting from the company’s ongoing investments in oil and gas.
Challenges Ahead
Even with increased funding, there are doubts about carbon capture technology. It has a history of delays and failures. The Houston area, known for heavy pollution, presents a tough challenge. Most emissions come from refineries and power plants, which are costly and difficult to retrofit with carbon capture technology.
Community Concerns
Local advocates worry that carbon capture projects won’t address other harmful pollutants like benzene and heavy metals, which affect nearby neighborhoods. These communities, mostly Latino, already suffer from some of the worst air quality in the nation.
The Bigger Picture
Despite the challenges, some experts believe carbon capture is essential to meet climate goals. The Biden administration supports this technology as part of its climate strategy. The Houston hub, the largest proposed carbon capture project, is gaining attention from major corporations and the federal government.
Moving Forward
The recent passage of a major climate and tax bill by Congress has boosted the carbon capture tax credit. This could make Exxon’s Baytown refinery project and others more profitable. Some experts now predict a 13-fold increase in carbon capture by the end of the decade.
Industry Reaction
Oil and gas executives are thrilled about the new incentives. Charles McConnell from the University of Houston, who advises Exxon and other companies on this project, described the industry’s reaction as “wild enthusiasm.”
Conclusion
With billions of dollars in federal support, Exxon’s carbon capture project in Houston is moving closer to reality. Whether it’s a true climate solution or just a way to keep using fossil fuels remains a topic of debate.
