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Exxon (XOM) Signs MoU to Decarbonize Normandy Platform in France

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Exxon Mobil Corporation (XOM - Free Report) through its subsidiary, Esso S.A.F., signed a memorandum of understanding (MoU) with multiple companies to collaborate on a decarbonization project in France.

The collaboration, which involves TotalEnergies SE (TTE - Free Report) and industrial companies, Air Liquide S.A., Borealis AG and Yara International ASA, is aimed at decarbonizing an industrial basin in France’s Normandy region.

Per the terms of the MoU, the companies will explore the development of industrial carbon capture and storage (“CCS”) infrastructure for the decarbonization of the Normandy platform. The project intends to reduce carbon dioxide (CO2) emissions from the industrial basin by up to 3 million tonnes per year by 2030.

During the first phase, Exxon and partners will explore the technical and economic feasibility of the project. The project will seek funds from European, French and regional schemes, while keeping its door open for collaboration with other potential industrial companies.

Since 2015, Air Liquide has been using its Cryocap technology at its Port Jerome unit in Normandy. Cryocap is a carbon capture technology, which can capture up to 90% of CO2 emissions. The company would bring its unique expertise in CO2 capture and liquefaction technologies to the partnership.

The CCS initiative supports Yara’s ambition of becoming carbon neutral by 2050. It would help decarbonize the company’s production sites and all of its value chains. Moreover, the companies will develop ecosystems and seek to achieve the production of 80 hydrogen fuel cell-powered trucks for TotalEnergies' French customers by 2023.

Exxon holds more than 30 years of experience in CCS technology and its expertise in CCS will help accomplish the project goals. Notably, the companies collaborated to maintain and improve the sustainability of industrial activities and ecosystems in Normandy.

Company Profile & Price Performance

Headquartered in Irving, TX, Exxon is one of the leading integrated energy companies in the world.

Shares of the company have outperformed the industry in the past six months. Its stock has gained 27.1% compared with the industry’s 14.4% growth.

 

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Zacks Rank & Stocks to Consider

Exxon currently carries a Zack Rank #3 (Hold).

Some better-ranked players in the energy space are Equinor ASA (EQNR - Free Report) and Matador Resources Company (MTDR - Free Report) , each currently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, the Zacks Consensus Estimate for Equinor’s 2021 earnings has been raised by 10.8%.

Matador’s earnings for 2021 are expected to increase 26.5% year over year.

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