Darren Woods, CEO Of Exxon Mobil, Calls For A Higher Carbon Prices On Firms

Exxon Mobil CEO Darren Woods wants the US government to assist promote some of the sustainable energy breakthroughs his business is researching, such as biofuels and direct air carbon dioxide absorption.

In an interview with CNBC’s David Faber, the CEO of one of the world’s top oil and gas firms stated that direct air capture, or the process of removing carbon from the atmosphere, is the “holy grail.” “If you can overcome some of those technological challenges, get your cost down, you’ve got a solution that can solve this in a very cost-efficient way,” he concluded. According to the business, the market for capturing and storing carbon dioxide will be worth $4 trillion by 2050.

The IRS tax code lists a current price for carbon dioxide sequestration, known as the 45Q tax credit, however it is limited to $50 per tonne caught and stored. Exxon Mobil would like to see at least $100 per tonne.

Woods acknowledged that a higher carbon pricing could be a challenging political achievement and said that measures focusing on certain market sectors could be a good place to start.

Exxon Mobil has been opposed to the idea of a carbon tax. Keith McCoy, a former Exxon lobbyist, was caught on camera saying that he did not expect a carbon tax would pass, but that it “gives us a talking point to say, ‘hey, what is Exxon Mobil for?'” ‘Well, we’re in favour of a carbon tax.'” Following the revelation of the recording, Exxon stated that McCoy no longer worked for the business and retracted his words.

When CNBC’s Faber questioned Woods if carbon capture could be a significant profit generator in 25 years, he responded yes. He is excited by the expansion of the clean energy discourse beyond wind and solar, and he sees future development opportunities for Exxon Mobil.

(Adapted from CNBC.com)

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