Page 10 - NorthAmOil Week 49 2021

NorthAmOil ENERGY TRANSITION NorthAmOil

ExxonMobil unveils net-zero

target for Permian Basin

PERMIAN BASIN SUPER-MAJOR ExxonMobil has announced electrify its operations with low-carbon power,
that it will target net-zero greenhouse gas (GHG) produced from renewables or using carbon
emissions from its operated assets in the US’ Per- capture and storage (CCS). It is aiming to have
mian Basin by 2030. routine flaring in the Permian eliminated by
The announcement comes days after the the end of 2022, and anticipates cutting flaring
company unveiled tougher emissions targets as volumes across its operations in the basin by
part of an update on its medium-term corporate more than 75% compared with 2019 by the end
plans. Unlike European super-majors, it is not of this year.
pursuing a long-term net-zero emissions target The Permian Basin is one of ExxonMobil’s
across its entire business but it is now targeting a key focus areas, accounting for over 40% of its
40-50% reduction in upstream emissions inten- US oil and gas output, after the region demon-
sity by 2030, compared with 2016 levels. strated its relative resilience to oil price down-
The new Permian target forms part of this turns. The super-major is also under mounting
push to cut upstream emissions intensity, and pressure, including from newly elected members
is also being touted by ExxonMobil as an accel- of its board backed by activist hedge fund Engine
eration and expansion of its emissions-cutting No. 1, to do more to decarbonise its operations.
efforts. (See NorthAmOil Week 48)
The Permian push will be supported by the The new ExxonMobil targets cover Scope
electrification of operations, continuing invest- 1 and 2 emissions – though stemming directly
ments in methane mitigation and detection tech- from its operations and indirectly from electric-
nology, the elimination of routine flaring and ity, steam, heating and cooling required to power
upgrades to equipment, ExxonMobil said. The its operations respectively.
company added that employing emissions offset “Our goal of net zero for Scope 1 and Scope
technology, potentially including nature-based 2 greenhouse gas [GHG] emissions is one of
solutions, would also contribute to its elimina- the most ambitious and wide-reaching in the
tion of Permian Basin emissions. Permian Basin,” stated ExxonMobil’s senior
ExxonMobil noted that it was planning to vice-president of unconventional, Bart Cahir.™

Woodside expands hydrogen business to US

OKLAHOMA AUSTRALIA’S Woodside has announced a plan by first hydrogen production in 2025.
to develop a green hydrogen project in the US. The company said it had also signed a mem-
The company said this week that it had secured orandum of understanding (MoU) with Hyzon
a lease and an option to purchase 94 acres (0.4 Motors. Under the MoU, Woodside and Hyzon
square km) of land in Oklahoma for develop- intend to explore opportunities to work together
ment of a modular hydrogen facility, known as on “demand stimulation, supply and infrastruc-
H2OK. ture solutions and co-ordinated advocacy”.
Woodside added that it was “progressing A day after its announcement about the
similar land acquisition opportunities aligned H2OK project, Woodside unveiled plans to
to growth markets in the US”. invest around $5bn in “new energy”, including
The H2OK project entails construction of an hydrogen and carbon capture and storage (CCS).
initial 290-MW facility that would use electrol- The company is also developing two hydrogen
ysis to produce up to 90 tonnes per day (tpd) of projects in Australia that would produce ammo-
liquid hydrogen for use by the heavy transport nia from hydrogen for export.
sector. If demand allows it, the facility could Green hydrogen, which is produced using
then be expanded up to 550 MW and 180 tpd electrolysis, uses renewable energy and is con-
of hydrogen. sidered to be the cleanest form of hydrogen.
Woodside said it had completed the prelimi- However, it is also the most costly, and its eco-
nary design for the facility and was now evaluat- nomic viability has yet to be demonstrated. A
ing tenders to kick off the front-end engineering handful of companies and countries have started
and design (FEED) before the end of this year. It working on green hydrogen development thus
is targeting a final investment decision (FID) on far, with the fuel increasingly touted as a key part
the project in the second half of 2022, followed of the energy transition despite its costs.™

P10 www. NEWSBASE .com Week 49 09•December•2021