Our policy has been to "Never justify any project that is supported by tax subsidies." You never know when the tax subsidies will disappear.
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The Return on Investment (ROI) for our Baytown LCS project has just fallen below the minimum ROI that we require for capital projects. Also, this cancellation will also impact our ROI for the recent CO2 pipeline acquisition along the Gulf Coast.
Exxon's clean hydrogen project hit by Trump budget cuts
Story by James Osborne, Washington Bureau
The Trump administration is cutting $3.7 billion in federal funding for clean energy and recycling projects, including more than $330 million designated for Exxon Mobil's clean hydrogen project at its Baytown facility.
In all, 24 projects will lose federal funding, including $270 million for Calpine's carbon storage project in Baytown, $99 million for Orsted's clean methanol project east of Houston and $375 million for Eastman Chemical's plastic recycling project in Longview.
The Department of Energy said in a statement to Axios that the projects, "failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars." They also said the Biden administration had "failed to conduct a thorough financial review" of the projects.
An Exxon spokesperson declined to comment. Calpine, Orsted and Eastman Chemical did not immediately respond to a request for comment.
Exxon's clean hydrogen project in Baytown, billed as the largest in the world, is the centerpiece of efforts to transform Houston and the Texas Gulf Coast into a hub for clean energy to meet increasing demand for climate-friendly fuels in Europe and East Asia.
In 2022, Ed Graham, vice president of ventures for Exxon Mobil Low Carbon Solutions, described the project as a, "game-changer for Houston to help kickstart both the hydrogen and (carbon capture and storage) industries."
https://www.msn.com/en-us/news/politics/exxons-clean-hydrogen-project-hit-by-trump-budget-cuts/ar-AA1FNEi8?ocid=BingNewsSerp
While they are at please put a stop to converting our natural gas engines to electric motors. It will cost the company close to 100 million a year in electricity and probably 10% more downtime.
Why is GHG still going on?
Way to go Engine1 and GM washout executives!
It's kind of a f**ked up corporate strategy to embrace these business models when they only "work" because of government money and subsidies.
Maybe BP's debacle will be a wake-up call? Or will the CEO and board continue to support cr-p like carbon capture while hoping the government can somehow turn it into a viable business?
SMH. This corporation has lost its way. And $60/bbl oil isn't going to help.
We should go back to one of our foundational principles which states, "We do not justify capital investments based on tax subsidies."
Coffin, nail...
Exxon's clean hydrogen project hit by Trump budget cuts
Story by James Osborne, Washington Bureau
The Trump administration is cutting $3.7 billion in federal funding for clean energy and recycling projects, including more than $330 million designated for Exxon Mobil's clean hydrogen project at its Baytown facility.
In all, 24 projects will lose federal funding, including $270 million for Calpine's carbon storage project in Baytown, $99 million for Orsted's clean methanol project east of Houston and $375 million for Eastman Chemical's plastic recycling project in Longview.
The Department of Energy said in a statement to Axios that the projects, "failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars." They also said the Biden administration had "failed to conduct a thorough financial review" of the projects.
An Exxon spokesperson declined to comment. Calpine, Orsted and Eastman Chemical did not immediately respond to a request for comment.
Exxon's clean hydrogen project in Baytown, billed as the largest in the world, is the centerpiece of efforts to transform Houston and the Texas Gulf Coast into a hub for clean energy to meet increasing demand for climate-friendly fuels in Europe and East Asia.
In 2022, Ed Graham, vice president of ventures for Exxon Mobil Low Carbon Solutions, described the project as a, "game-changer for Houston to help kickstart both the hydrogen and (carbon capture and storage) industries."
https://www.msn.com/en-us/news/other/exxon-s-clean-hydrogen-project-hit-by-trump-budget-cuts/ar-AA1FNEi8?ocid=BingNewsSerp