Thread regarding ExxonMobil Corp. layoffs

Shocking! "Exxon Walking Away From Algae Biofuel Projects in Climate Retreat"

I'm shocked!!!

https://www.bloomberg.com/news/articles/2023-02-10/exxon-retreats-from-major-climate-effort-to-make-biofuels-from-algae

After advertising its efforts to produce environmentally friendly fuels from algae for over a decade, Exxon Mobil Corp. is now quietly walking away from its most heavily publicized climate solution.

Exxon confirmed that it’s pulling back on funding for algae in favor of other technologies now being worked on by its Low Carbon Solutions division. “At this point we have other programs that are ready for deployment,” said Vijay Swarup, Exxon’s senior director of technology who ran algae research. “We need to get on the deployment curve for carbon capture, for hydrogen, for biofuels. Algae still needs some more work.”

Exxon is retreating from algae despite a smashing financial performance last year, in which it posted a record-breaking $59 billion in profits. And it comes just as the algae research has shown significant progress: Viridos and Exxon achieved significant improvements in recent years, including a seven-fold increase in the productivity of algae grown in outdoor ponds, according to Viridos Chief Executive Officer Oliver Fetzer.

Algae has long played an intriguing role at Exxon. The company, more than any other, has received criticism for being the most recalcitrant on climate change, becoming the subject of lawsuits, protests and years of political scrutiny over its long-term commitment to fossil fuels even as global warming gathers pace. As criticism poured in, Exxon frequently held up its algae efforts as one significant piece of evidence that it was serious about climate change and discovering cleaner forms of energy. “They’ve been trying to create the impression that they’re part of the solution, when they’re certainly not,” said Robert Brulle, a visiting professor at Brown University who has studied the promotional activities of the fossil fuels industry.

In an interview, Exxon officials rejected the suggestion that algae was some sort of greenwashing attempt. “The progress we’ve made to this point is remarkable,” Swarup said, adding that algae still has enormous future potential. “Where we are with the algae today is further along than, quite frankly, anyone has ever been with algae, in terms of productivity, in terms of the ability to replicate the results outdoors.”

All told, the company spent more than $350 million dollars trying to develop biofuels from algae, which was more than double what the company spent on algae advertising, spokesman Casey Norton said.

While recent progress with Viridos was significant, Exxon is prioritizing other low-carbon solutions — including spending billions of dollars on carbon capture and storage — because it remains extremely challenging to produce large quantities of algae biofuels at a profit. Exxon will invest $17 billion over the next five years on initiatives that will lower emissions and help achieve its goal of eliminating emissions from its operations by 2050. “Our objective is to commercialize technologies,” said Swarup. “We still have a healthy portfolio of R&D programs in the lower-carbon space.”

Emboldened by the progress, Exxon declared in 2018 that it would target commercial production with the ability to produce 10,000 barrels a day of algae biofuels by 2025. An Exxon press release from this period quoted Swarup heralding the push into “lower-emission technologies to help reduce the risk of climate change.” That year, Swarup appeared at the South by Southwest festival in Austin to publicize the algae program.

Exxon’s marketing machine kicked into high gear. In one ad that appeared on national television, a guitar bangs out a gritty version of “Farmer in the Dell,” as the sun peaks up over massive ponds full of green liquid sloshed along by paddlewheels. The words “more energy and fewer emissions” splash across the screen. The ad concludes with an Exxon scientist saying with a confident grin, “Someday, you might be calling me an energy farmer.”

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Post ID: @OP+1l8I1z8e

21 replies (most recent on top)

https://www.bnnbloomberg.ca/algae-fuel-company-that-exxon-once-bankrolled-finds-new-funders-1.1894673

Algae Fuel Company That Exxon Once Bankrolled Finds New Funders
Ben Elgin and Kevin Crowley, Bloomberg News

(Bloomberg) -- For over a decade, Viridos Inc. was the centerpiece of Exxon Mobil Corp.’s heavily advertised push to develop climate-friendly biofuels from algae. The oil major slashed its support for the company last year. Now Viridos, based in La Jolla, California, has secured funding from a new group of backers.

Viridos announced on Monday a $25 million round of financing from Bill Gates-led Breakthrough Energy Ventures, with United Airlines Holdings Inc. and Chevron Corp. also participating. The funding will support Viridos’s ongoing quest to boost the productivity of its algae as it aims to develop low-carbon fuels for heavy-duty transportation, including airplanes and trucks.

Viridos genetically modifies the algae to grow them faster and fatter. The company has increased the productivity of these aquatic organisms by a factor of seven, according to Chief Executive Officer Oliver Fetzer, which is more than halfway to the levels needed for commercial production.

When funding from Exxon dried up last year, Viridos cut 60% of its staff and shuttered its outdoor ponds in the California desert. Exxon told Bloomberg Green it shifted its focus to other low-carbon technologies that are closer to deployment, such as carbon capture.

With its new funding, Viridos will work in the lab with its trimmed-down staff to develop and enhance its algae strains. The resulting biofuels could produce 70% fewer heat-trapping emissions than conventional fuels, according to the company. And since the organisms grow in brackish water and don’t require arable land, they won’t compete with food crops.

The company’s approach impressed Breakthrough Energy Ventures, which led the financing round after struggling for years to identify promising low-carbon investments into liquid fuels. “There are big segments of transportation that are very difficult to electrify,” said Eric Toone, Breakthrough’s chief technical officer. “The need for hydrocarbons and zero-carbon hydrocarbons is going to be significant for a very long time.”

Chevron sees the algae funding as a “long-term investment” that may one day contribute to its growing biofuel production, said Natalie Merrill, a senior vice president for business development. With 15 years of work already behind it, Viridos has “made some good advances” and the “potential is big” if algae can reach commercial scale, she said.

But cultivating algae in a way that can compete economically with fossil fuels is incredibly challenging. Dozens of companies have tried and failed. Shell Plc, for instance, launched an algae biofuels joint venture in 2007 and then sold its stake four years later. Numerous startups, including Algenol and Sapphire Energy, pivoted away from biofuels to focus on turning algae into specialty products like cosmetics or pet-food additives.

“There’s still a lot of risk there,” said John McGowen, director of operations at an algae research center at Arizona State University. “There’s just a lot that hasn’t been demonstrated at any kind of significant scale.”

Perhaps the thirstiest market for these low-carbon fuels will be airlines, which are on track to contribute more than 20% of the planet’s CO2 emissions by 2050 and have few other options to slash their footprints. US airlines set a target for 3 billion gallons of sustainable aviation fuel (or SAF) by 2030. That would represent an enormous increase. Globally, only about 80 million gallons of SAF was produced last year, according to the International Air Transport Association.

Most SAF today is derived from fats, oils and greases. “Think french-fry grease from McDonald’s,” said Michael Leskinen, president of United Airlines Ventures. But, he adds, “there’s only so much of that.”

United more than quadrupled its use of SAF last year to 2.9 million gallons. But that’s still far below 1% of the airline’s jet fuel supply.

To spur the development of new kinds of SAF, United last month launched a $100 million sustainable flight fund alongside a number of corporate partners, including Boeing Co., General Electric Co. and JPMorgan Chase & Co. The airline’s backing for Viridos was supplied through this fund.

Viridos still has a challenging path ahead. Fetzer hopes the company can boost the productivity of its algae to commercial levels within about two years. After that, the next step would be to build a demonstration plant capable of producing 100 barrels of biofuels per day. Such an endeavor would require hundreds of acres of ponds and likely cost more than $100 million to develop, according to Fetzer.

“Viridos has got hurdles, for sure,” said United’s Leskinen. “But it is far and away the world’s leading developer of algae that could be used for fuel.”

©2023 Bloomberg L.P.

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Post ID: @ursp+1l8I1z8e

https://coloradosun.com/2023/03/06/algae-biofuel-mines-nrel-exxon/

Exxon drops algae research, but Colorado labs press on in hunt for green fuel
Technologies that are quicker to scale are now ExxonMobil’s focus. The Colorado labs the petroleum giant funded still see potential in algae as a biofuel.

Mark Jaffe
3:43 AM MST on Mar 6, 2023

Oil giant ExxonMobil’s decision to abandon its 14-year, multi-million-dollar support for research into making fuel from algae ended years of funding for projects at the Colorado School of Mines and the National Renewable Energy Laboratory.

Backing for research into developing high-yield algae at Mines was terminated at the end of last year and a NREL project to develop a computer model to test farm-scale biofuel productivity will conclude this spring.

“When Exxon funded our lab, it was always about basic science,” Matthew Posewitz, a Mines chemistry professor, said. Exxon provided millions of dollars in the search and development of fast-growing algae.

“They are very supportive of the research, but now they are funding other carbon capture research,” Posewitz said.

Since 2009, Exxon has spent $350 million on projects to develop a fuel from the lipids — a fatty acid — in algae.

The company touted its research in print, video ads and on social media platforms, such as Instagram and Facebook. There was even a prediction that 10,000 barrels of biofuels could be produced by 2025.

The efforts, however, also drew criticism from some environment groups, which contended that the project was just greenwashing — misleading information to make Exxon look environmentally friendly.

At the end of 2022, Exxon began to unwind its support for algae, cutting funding to Viridos Inc. a California biotech company that had been the oil company’s prime partner in algae fuel development and then concluding the Mines and NREL projects.

“Algae still has real promise as a renewable source of fuel, but it has not yet reached a level we believe is necessary to achieve the commercial and global scale needed to economically replace existing sources of energy,” Todd Spitler, an Exxon spokesman, said in an email

Exxon is shifting to focusing on technologies that it says can be scaled-up more quickly, such as carbon capture and hydrogen — move that was reinforced by subsidies for those technologies in the Biden administration’s Inflation Reduction Act, Exxon’s CEO Darren Woods said during the company’s fourth quarter earnings call.

“Our business requires that we make decisions around the commercial viability of R&D projects,” Spitler said. “We announced plans to invest $17 billion in lower emission initiatives from 2022 to 2027. This includes investments in carbon capture and storage, hydrogen and other biofuels.”

8 years of research at Mines lab over, but not done
The decision ended an eight-year partnership with the Posewitz Research Group in a search for fast growing algae — an aquatic, often microscopic, organism that, like land-based plants, lives through photosynthesis.

“They are photosynthetic organisms that are incredibly efficient,” Posewitz said.

For developing algae fuels two key challenges are growing enough algae — biomass — and increasing the lipid content of each organism. Posewitz’s lab has “focused on maximizing bio-productivity.”

Posewitz and Exxon looked for hearty algae in the hottest, saltiest bodies of water, including California’s Mono Lake, the Great Salt Lake and the Gulf of Mexico.

“The experimental design was basically ‘The Hunger Games,’” Posewitz said. A Home Depot bucket-worth of Gulf of Mexico water was put in a bioreactor in the laboratory in a high-heat, high-salt, high-light environment to see which organism survived best.

The winner was Picochlorum celeri, which was able to double its biomass in as little as two hours, 20% to 75% faster than other cell lines.

“A very fast doubling time is essential in the batch process for establishing a productive level of biomass and for recovering from process upsets,” according to one of the group’s research papers.

“On its best days celeri can produce 50 grams of biomass per square meter,” Posewitz said. The average annual production of a corn field is 4 to 5 grams. The goal is to get the algae to a steady 20 to 30 grams per year.

As promising as P. celeri is, one drawback is that it’s not a particularly good lipid producer, Posewitz said. Viridos has been working on increasing the lipid content of test algae.

Posewitz, who has been studying photosynthesis for 25 years, said his lab will continue its work, including genetic engineering of P. celeri, with other funding.

“At some level we are trying to change the world and that’s a heavy lift,” Posewitz said.

Exxon’s NREL project built a computer simulator of a pond to test the impact of farm-scale operations on biomass and biofuel yield and the effects of different engineered algae strains, according to a statement from the lab.

The Exxon project, the statement said, was designed to run three years, concluding this spring with results published “in the near future.”

David Glickson, an NREL spokesman, said the backing for the project is part of a $100 million, 10-year agreement between Exxon and NREL struck in 2019 for a range of projects. That is the largest financial commitment to the lab, outside government funding.

NREL has been doing research on algal fuels for more than 10 years and will continue its ongoing research into developing algae strains, cultivation, carbon capture and product conversion technology to market adoption, the statement said.

Most of the work is funded by the U.S. Department of Energy’s Bioenergy Technologies Office, the statement said.

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Post ID: @rbdn+1l8I1z8e

I wonder if we will delete our YouTube and Facebook algae videos.

https://youtu.be/-mAtvRA4MBA
ExxonMobil Algae Advert

https://youtu.be/9IuAkMJqb7Y
School of ExxonMobil: Algae BioFuel

https://www.facebook.com/watch/?v=317918545343205
ExxonMobil: Learn About the Potential for Algae BioFuels

https://www.facebook.com/watch/?v=541226876352668
Did you know that with algae it is the fatter....

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Post ID: @boif+1l8I1z8e

So amazing the lights are still on in Clinton, can’t believe it.

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Post ID: @atok+1l8I1z8e

Send all of them to jail.

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Post ID: @afuz+1l8I1z8e

It is sad that algae research all started about 50 years ago and lasted so long in Clinton with little hope for success. The company spent $320 million dollars on algae research but it took the union workers more than FIVE YEARS to get a raise. Total mismanagement of research funding!

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Post ID: @8fxb+1l8I1z8e

The supervisor of Algae program had no background in biofuels or any technical intellect. This person was good about bringing cakes for the lab directors and managers to celebrate their birthdays where all brown nosers would collect and mingle. This is referred to as talent at ExxonMobil :). Clinton has been a place for pathetic from the top to the bottom for last two decades and continues its efficient downwards journey.

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Post ID: @7tts+1l8I1z8e

The Executives concerned should be held accountable at the next shareholder meeting.

When I was based at Paulsboro and At Clinton, I never met anyone who thought the algae project was viable. Early on, someone outside the company published an analysis that predicted it would take an algae farm the size of the Gulf of Mexico to replace just 20% of the Canadian diesel volumes. The Canadian - not even the US!

But was anyone allowed to criticize this BS? Of course not. We had to sit there in silence, while Dr Syrup and successive EMRE Presidents lied to our faces and one lucky woman got her promotions and became the new face of the company.

What a f@cking waste of money. For a green washing that didn’t fool anybody.

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Post ID: @6atz+1l8I1z8e

Syrup is an essence of fraud. Only syrup like people are left at ExxonMobil.

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Post ID: @6zey+1l8I1z8e

(Bloomberg) -- After advertising its efforts to produce environmentally friendly fuels from algae for over a decade, Exxon Mobil Corp. is now quietly walking away from its most heavily publicized climate solution.Exxon has slashed its support for Viridos Inc., a biotech company based in La Jolla, California, that operated as the oil giant’s key technical partner since it began its algae push in 2009. With Exxon funding drying up and difficulty finding other backers, the biotech firm laid off 60% of its staff on Dec. 27, according to Viridos executives. The biotech company said it is still moving forward with algae research. ...

Exxon, meanwhile, has also halted funding for a multi-million-dollar algae project at the Colorado School of Mines at the end of last year, after supporting the work for eight years. Another Exxon-backed venture with the National Renewable Energy Laboratory is set to end within weeks.Exxon confirmed that it’s pulling back on funding for algae in favor of other technologies now being worked on by its Low Carbon Solutions division. “At this point we have other programs that are ready for deployment,” said Vijay Swarup, Exxon’s senior director of technology who ran algae research. “We need to get on the deployment curve for carbon capture, for hydrogen, for biofuels. Algae still needs some more work.” ....

Fetzer declined to speculate on why Exxon pulled back its funding just as the algae results were improving, but he was quick to praise the oil giant for bankrolling Viridos for so many years. “Exxon was here for us when everyone else had lost patience with algal biofuels,” he said. “We wouldn’t be here today without that support.”Many former Viridos employees are less magnanimous. Internal documents, including a pitch deck to potential investors, indicate that a commercial-scale algae facility capable of generating 10,000 barrels a day would require about 50-square miles of land and cost around $5 billion to build. While Exxon loved to showcase its support for algae biofuels, former employees said they doubted the oil company was ever serious enough to commit that level of funding. (Exxon officials counter that they were very serious about algae, but it’s not ready for commercial deployment.) For the scientists still working to figure out algae biofuels, they fear what Exxon’s vanishing funds could mean for their endeavors. Very few companies are still working to solve this critical challenge, said McGowen of the Arizona State University algae center. “So the idea of Viridos not moving forward and being successful is something we don’t like to see,” he said. “It takes a lot of the wind out of the sails.”

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Post ID: @6ovv+1l8I1z8e

We still have some tee shirts left if you want one, such a scam, and waste of money, could have filled the lecture hall with $100.00 bills, Johnny Quest friend jumped ship fast. 08801. Redhead was cute, agree,

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Post ID: @5oab+1l8I1z8e

"The redhead was cute tho." I was always partial to the nerdy guy in the fuel cell commercial - https://youtu.be/9i41P68YgOI. That dude pi---d himself out to help keep the technology alive.

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Post ID: @5lxl+1l8I1z8e

ExxIt: ExxonMobil exits algae, what’s next?
February 12, 2023 | Jim Lane

https://www.biofuelsdigest.com/bdigest/2023/02/12/exxit-exxonmobil-exits-algae-whats-next/

Bloomberg has reported on a pullback by ExxonMobil from its long-running investments in algae biofuels. You can read Ben Elgin and Kevin Crowley’s crisp reporting here.

For those looking for a compact summary of ExxonMobil and biofuels, here’s my theory.

They were against biofuels because they were too low-yield and expensive, until they found algae, which was too low-yield and expensive, but they said they could work on the yields until they were less expensive. They expected to spend up to $500M on the R&D effort, until they stopped at around $320M . Perhaps that’s because they spent something like $160M on algae television commercials.

Good news, they increased the yield, after years of R&D, by an order of magnitude. But, wait a minute. On second thought, they’ve concluded that algae is too low-yield and expensive. It might be decades away, and the one thing none of us has is that much time, given all the pressure.

Now, they have focused their efforts on carbon capture, except that it is too low-yield and expensive, but they say they can work on the yields until they are less expensive. So, if they store more carbon in the ground and sell it as a public service, they can extract more carbon from the ground and sell it as a private enterprise.

Great news, scientists think that underground, carbon dioxide gas eventually becomes a liquid, and then a solid, and because of that, ExxonMobil will become more liquid, and their liquidity will be more solid. Squarely, they become more circular because they have triangulated carbon and petroleum, and they can sell more gas to the Pentagon, and that’s solid.

They were solid for algae except they found that getting the algae out of the liquid wasn’t exactly a gas. Now, they have new technologies to pursue, except they are low-yield and expensive, and they’re going to work on that. It’ll be commercial in the end and, in the meantime, just wait ’til you see the commercials.

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Post ID: @3cts+1l8I1z8e

Need to feed those executive sponsors with algae juice for wasting company resources....

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Post ID: @3jel+1l8I1z8e

EM should have sponsored fusion energy.

A lot more successful than pond sc-m diesel.

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Post ID: @2zpy+1l8I1z8e

@cgt+1l8I1z8e, I think the OP was being sarcastic. Spending $175M on advertising a product that doesn't exist has to tell you something..

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Post ID: @1lwy+1l8I1z8e

It never remotely passed one minute of critical thinking to realize that this would never work. Would have required pond sc-m covering 100’s of square miles to provide meaningful amounts, and even then would have been wildly uneconomic. The redhead was cute tho.

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Post ID: @1hat+1l8I1z8e

We knew that we should have turned out the lights on algae to crude in 2009.

It was well worth the $350 million in R&D dollars to see the V.P. of Research and Development hold an Erlenmeyer flask of colored green water in a United Airlines Inflight Hemispheres magazine. I should have asked the V.P. for an autograph copy. It would be a collector's item today.

WAEM.

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Post ID: @1wxd+1l8I1z8e

Same thing will happen with carbon capture

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Post ID: @1ojz+1l8I1z8e

Everybody within knew it was a waste of time($$$$) and $$$$$. Just a poor decision from leadership, PERIOD

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Post ID: @adh+1l8I1z8e

Sort of not shocked...I was involved in the R&D near the beginning back in 2009.

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Post ID: @cgt+1l8I1z8e

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