Exxon Mobil Corp (NYSE: XOM) is a leading energy company, known for its traditional oil and gas business. To stay competitive and meet its customers’ needs in energy transition, the company recently launched its “Low Carbon Business Solutions” unit. This new sector has the potential to bring in hundreds of billions of dollars over time, according to Exxon’s president of the unit, Dan Ammann.
Ammann explained that the new business model could look different than the traditional oil and gas business and have a less cyclical profile. The future development of the sector will depend on policy support for carbon pricing and the cost to reduce emissions. Exxon has invested $10 billion to reduce emissions from its own operations and another $7 billion to commercialize technologies to lower greenhouse gases. It is estimated that the market potential of these technologies could add up to $6.5 trillion by 2050.
Exxon has also signed a long-term deal with Linde (NYSE:LIN) to transport and store carbon dioxide from the hydrogen production facility. The company plans to make “robust double-digit returns” in this business by 2027.
Dan Ammann is a key figure in Exxon’s energy transition strategy. A veteran of the company, he has held various operational and finance roles in Europe, Asia, and the United States. In 2019 he joined the board of directors of the US-China Business Council and was appointed to the position of president of Exxon’s Low Carbon Business Solutions the following year. He has been key to providing strategic direction for the company’s future.