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, reports Yahoo News.
Exxon slashes support
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.”
Remarkable shift for Exxon
It’s a remarkable shift for Exxon. The allure of biofuels made from algae is that they would potentially generate less than half the emissions of petroleum. The production and use of Exxon’s oil and gas ultimately generates about 630 million tons of heat-trapping gases each year, nearly equal to the carbon footprint of Canada. The green goop has for years been prominently featured as a climate-friendly possibility in television ads and investor presentations.
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.
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Source: Yahoo News
