ExxonMobil in the Crosshairs: The Trump Administration Is Cutting Funding for Projects Aimed at Capturing a Potential $4 Trillion Market Opportunity.

Group 1: Funding Cuts and Impact - The Trump administration is cutting funding to 24 green energy projects totaling $3.7 trillion, with 70% of these projects approved during the Biden administration [1] - ExxonMobil is set to lose $332 million in funding for a carbon capture and sequestration (CCS) project at its Baytown refinery complex [1] - Calpine, a power producer, will also lose funding for its CCS projects, which could indirectly impact Exxon's CCS ambitions [9][10] Group 2: Baytown Project Details - Exxon is developing the world's largest low-carbon hydrogen and ammonia production facility at its Baytown refinery, aiming to produce 1 billion cubic feet of low-carbon hydrogen per day and over 1 million tons of low-carbon ammonia annually [4] - The associated CCS project at Baytown is expected to store up to 10 million metric tons of carbon dioxide per year, equivalent to the emissions of over 2 million cars [5] - Exxon estimates that the Baytown project will capture 98% of the carbon dioxide produced, appealing to customers like Marubeni [6] Group 3: Future Prospects and Investments - ExxonMobil sees a potential $4 trillion global market opportunity in carbon capture and storage over the coming decades [2] - The company is pursuing up to $30 billion in lower emissions investment opportunities, which could provide new growth sources and less volatile earnings compared to its oil and gas business [11] - Despite the funding cuts, Exxon plans to invest $140 billion into major capital projects, expecting to generate $20 billion in additional earnings and $30 billion in incremental cash flow by 2030 [12]