Exxon faces competition from renewable energy sources, which are rapidly deployable and decreasing in cost. Companies like Google and Microsoft are investing heavily in renewable energy projects. The cost of carbon capture and storage (CCS) technology adds financial challenges for Exxon, as it is expensive and still being refined. Despite tax credits available under the Inflation Reduction Act, CCS technology has had mixed success in achieving its carbon capture targets.
Key takeaways:
- Exxon Mobil plans to build a natural gas power plant for data centers, aiming to capture and store over 90% of its carbon emissions.
- The power plant will be "fully-islanded," not connected to the grid, to avoid interconnection delays.
- Exxon faces competition from rapidly deployable and cost-effective renewable energy projects by companies like Google and Microsoft.
- Carbon capture and storage technology is costly and has mixed success rates, but tax credits from the Inflation Reduction Act may incentivize its use.