ExxonMobil Expands Interest in Biofuels, Acquires Stake in Biojet AS

Rhea-AI Summary

ExxonMobil has acquired a 49.9% stake in Biojet AS, a Norwegian company focused on producing lower-emissions biofuels from wood waste. This agreement allows ExxonMobil to purchase up to 3 million barrels of biofuels annually. Biojet AS plans to build five facilities, with commercial production starting in 2025.

The project is expected to significantly reduce greenhouse gas emissions in the transportation sector, meeting advanced fuel requirements in Norway and the EU. ExxonMobil continues its commitment to invest in lower-emission energy solutions.

Positive

• Acquisition of 49.9% stake in Biojet AS enhances ExxonMobil's biofuels portfolio.
• Potential to produce up to 3 million barrels of biofuels annually, supporting revenue growth.
• Initiative aligns with global efforts to lower greenhouse gas emissions.

Negative

• None.

• Lower-emissions biofuels and biofuel components to be produced from wood waste
• Advances efforts to help reduce greenhouse gas emissions in the transportation sector
• Agreement includes 49.9% stake in Biojet AS and offtake agreements for up to 3 million barrels per year

IRVING, Texas--(BUSINESS WIRE)-- ExxonMobil is expanding its interests in biofuels that can help reduce greenhouse gas emissions in the transportation sector, acquiring a 49.9% stake in Biojet AS, a Norwegian biofuels company that plans to convert forestry and wood-based construction waste into lower-emissions biofuels and biofuel components.

Biojet AS plans to develop up to five facilities to produce the biofuels and biofuel components. The company anticipates commercial production to begin in 2025 at a manufacturing plant to be built in Follum, Norway. The agreement enables ExxonMobil to purchase as much as 3 million barrels of the products per year, based on the potential capacity of five facilities.

“The agreement with Biojet AS advances ExxonMobil’s efforts to provide lower-emissions products for the transportation sector,” said Ian Carr, president of ExxonMobil Fuels and Lubricants Company. “Using our access at the Slagen terminal, we can efficiently distribute biofuels in Norway and to countries throughout northwest Europe.”

Biofuels and biofuel components can meet the requirements for advanced fuels under Norwegian, European Union and United Kingdom regulations. According to the European Union Renewable Energy Directive, biofuels produced from wood waste can help reduce life-cycle greenhouse gas emissions by 85% compared to petroleum-based diesel.

When produced, Biojet AS’s biofuels can be used for passenger vehicles and heavy trucks. Additional opportunities for marine transportation and aviation may develop as the market for lower-emissions biofuels expands.

The investment in Biojet AS builds on ExxonMobil’s continuing efforts to develop and deploy lower-emission energy solutions. ExxonMobil established a Low Carbon Solutions business in 2021 and is currently evaluating biofuels, carbon capture and storage, and hydrogen projects around the world.

ExxonMobil’s majority-owned affiliate, Imperial Oil Ltd., is moving forward with plans to produce renewable diesel at a new complex at its Strathcona refinery, and ExxonMobil expanded its agreement to annually purchase up to 5 million barrels of renewable diesel from Global Clean Energy’s biorefinery in California. Chemically similar to petroleum-based diesel, renewable diesel and other biofuels can be readily blended for use in engines on the market today.

Since 2000, ExxonMobil has invested more than $10 billion to research, develop and deploy lower-emission energy solutions.

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 and the Energy Factor.

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Cautionary Statement

Statements of future events, plans or product offerings in this release are forward-looking statements. Actual future results, including product offerings, investment performance, delivery timing. available capacity, and the impact and results of new technologies on product efficiency and life-cycle emission reductions could vary depending on the outcome of general business conditions; further research and testing; the development and competitiveness of alternative technologies; the ability to scale pilot projects on a cost-effective basis; political and regulatory mandates, incentives and other developments; and other factors discussed in this release and under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s website at exxonmobil.com.

Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as Corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Nothing contained herein is intended to override the corporate separateness of affiliated companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220111005073/en/

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Source: Exxon Mobil Corporation

FAQ

What is the significance of ExxonMobil's acquisition of Biojet AS?

ExxonMobil's acquisition of a 49.9% stake in Biojet AS aims to enhance its biofuels portfolio and contributes to reducing greenhouse gas emissions in the transportation sector.

How much biofuel will ExxonMobil be able to purchase annually from Biojet AS?

ExxonMobil will have the ability to purchase up to 3 million barrels of biofuels annually from Biojet AS.

When is commercial production expected to begin for Biojet AS?

Commercial production at Biojet AS is anticipated to begin in 2025.

What are the environmental benefits of the biofuels produced by Biojet AS?

Biofuels produced from wood waste can reduce life-cycle greenhouse gas emissions by up to 85% compared to petroleum-based diesel.