ExxonMobil Plans to Increase Carbon Capture at LaBarge, Wyoming Facility
(ExxonMobil) ExxonMobil today (October 21, 2021) initiated the process for engineering, procurement and construction contracts as part of its plans to expand carbon capture and storage (CCS) at its LaBarge, Wyoming facility, which has already captured more CO2 than any other facility in the world. The expansion project will capture up to 1 million metric tons of CO2, in addition to the 6-7 million metric tons already captured at LaBarge each year.
- Annual carbon captured to increase approximately 1 million metric tons
- Bids requested for engineering, procurement and construction to expand carbon capture
- Estimated $400 million investment advances commitment to CO2 emission reduction
“The expansion of our carbon capture and storage operations at LaBarge underscores our commitment to advancing CCS projects around the world,” said Joe Blommaert, president of ExxonMobil Low Carbon Solutions. “This technology is critical to help meet society’s lower-emissions goals, and with the right policies in place, is immediately deployable. ExxonMobil has long supported policies that provide a predictable price on carbon emissions, which enable new or expanded carbon capture and storage investments.”
The LaBarge expansion project is in the design and permitting phase and a request for bids for engineering, procurement and construction contracts has been issued to third parties. A final investment decision is expected in 2022 and will be based on several factors, including regulatory approvals. Operations could start as early as 2025.
The proposed $400 million investment is the latest in multiple expansions of carbon capture at LaBarge. The location currently represents nearly 20% of all CO2 captured in the world each year. The expansion will further mitigate emissions by capturing up to an additional 1 million metric tons of CO2 each year.
ExxonMobil Low Carbon Solutions is evaluating several other large-scale carbon capture and storage projects in the US Gulf Coast, Europe and Asia. The company has an equity share in approximately one-fifth of global CO2 capture capacity and has captured approximately 40% of all the captured anthropogenic CO2 in the world.
In addition to producing natural gas, LaBarge is one of the world’s largest sources of helium and produces approximately 20% of global supply. Helium is a critical component in many fields, including scientific research, magnetic resonance imaging, high-tech manufacturing (semi-conductors), space exploration, and national defense.
ExxonMobil continues to advocate for an explicit price on carbon to incentivize further public and private investments such as the LaBarge expansion, in the highest emitting sectors vital to society’s growing needs.
ExxonMobil established its Low Carbon Solutions business to commercialize low-emission technologies. It is initially focusing its carbon capture and storage efforts on point source emissions, the process of capturing CO2 from industrial activity that would otherwise be released into the atmosphere, and injecting it into deep underground geologic formations for safe, secure and permanent storage. The business is also evaluating strategic investments in biofuels and hydrogen to bring those lower-emissions energy technologies to scale for the highest emitting sectors of the global economy.
The International Energy Agency projects CCS could mitigate up to 15% of global emissions by 2040, and the U.N. Intergovernmental Panel on Climate Change estimates global decarbonization efforts could be twice as costly without wide-scale deployment of carbon capture and storage.
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About ExxonMobil
ExxonMobil, one of the largest publicly traded international energy companies, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world. To learn more, visit exxonmobil.com, the Energy Factor and Carbon capture and storage | ExxonMobil. READ MORE
EXXON’S CARBON, HIGH PRICES: (Politico’s Morning Energy)
ExxonMobil to expand carbon capture and storage at LaBarge, Wyoming, facility (ExxonMobil)
Exxon to Build $400 Million Wyoming Carbon-Capture Project (Transport Topics)
Excerpt from Politico’s Morning Energy: EXXON’S CARBON, HIGH PRICES: Exxon Mobil says it’s new “Low Carbon Solutions” business is showing signs of success even without a global, widespread government push for carbon capture technology. The company in its latest earnings statement said it has 10 carbon capture projects underway around the world and is fielding interest from potential customers looking to cut their emissions.
Low Carbon Solutions, which Exxon created in 2021, “is rapidly expanding, utilizing existing [global] policy,” Exxon Chief Executive Darren Woods said during the company’s earnings call on Tuesday. On the flip side, Exxon also rapidly boosted its oil production as prices took off during the past year, and the company saw average production in the Permian Basin jump more than 25 percent from the prior year, to about 460,000 oil-equivalent barrels per day, Woods said.
In all, the oil companies had a banner year as high oil prices offset slow fuel sales that still had not reached pre-pandemic levels. Exxon pulled in $8.3 billion in profits for the fourth quarter, while rival Chevron said profits for all of 2021 reached a record high of $15.6 billion – not bad for companies that were swimming in red ink the previous year. Whether this will lead to more oil production – and more methane emissions – this year remains to be seen. READ MORE
