Exxon Mobil Advancing Direct Air Capture Technology with Cost Reduction Goal of $100 per Tonne

Exxon Mobil, the world’s largest publicly traded oil company, is researching methods of removing carbon dioxide directly from the atmosphere with an aim to cut costs by half. The current cost for such extraction through Direct Air Capture technology stands at between $600 and $1,000 per tonne of emissions removed, making it unaffordable on a large scale according to CEO Darren Woods during Exxon’s quarterly earnings call last week. He further added that the high cost would not be sustainable for addressing climate change as “the world won’t be able to pay for that.”
Exxon has initiated pilot projects in Baytown, Texas, using its proprietary Direct Air Capture process which it hopes will bring down costs by 50%. While this price reduction may seem substantial at first glance, Woods cautioned the technology would still not become economically viable on a global scale. He further explained that atmospheric emissions are extremely dilute and require processing of vast amounts of air to remove just one tonne of carbon dioxide.
The oil major’s CEO also acknowledged that achieving costs as low as $100 per tonne would be necessary for Direct Air Capture technology to become a viable tool in the fight against climate change, highlighting this challenge was difficult but not insurmountable. Dozens of universities and companies including Exxon are working on making direct air capture scalable.
Exxon is also involved with Carbon Capture & Storage (CCS) technologies that remove higher concentration emissions streams from industrial processes such as power plants, refineries or steel mills. The company has signed three contracts to eliminate greenhouse gases emanating from the operations of CF Industries, Nucor and Linde along the Gulf Coast region in Texas where it is building a pipeline network for carbon storage.
The effectiveness of both Direct Air Capture (DAC) & Carbon Capture technologies have been questioned by environmental activists who accuse oil companies like Exxon Mobil of investing heavily to prolong their reliance on fossil fuels despite concerns around global warming. In fact, The International Energy Agency describes CCS as “critical” in achieving net-zero greenhouse gas emissions by 2050 but warns that the industry must prove its ability to operate at scale before relying too heavily upon it for climate change mitigation efforts.