In spite of people saying they believe in climate change very very few people are willing to out their wallet where their mouth is. Without taxpayers cutting checks every LCS job is a money losing dog. There is no market mechanism. DW has pointed this out over and over if you have been watching. Engine1 and the GM washout executives dont seem to understand though and keep pushing LCS. No one is willing to pay to capture emissions is the sad truth.
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It’s only temp til the dems return. LCS will scale back but too much invested to abandon. It’s all been planned for
Our policy has always been, "Never justify a project based on tax subsidies?" You never know when the tax subsidies will disappear.
Stupid idea, relying on Government hands out for a business strategy.
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
Agreed.