2015 Corporate Citizenship Report

Up Close: Advanced biofuels partnership with Michigan State University ExxonMobil is a leader in funding and conducting research on advanced biofuels. In 2015, ExxonMobil and Michigan State University (MSU) launched a partnership to advance biofuel research by developing the basic science required to progress algae-based fuels and bio-products. Research has shown that algae photosynthesis can be highly efficient under optimal conditions in the laboratory but that this efficiency drops under realistic growth conditions. The partnership seeks to understand why some strains of algae are more efficient than others by using advanced technologies to study the photosynthetic processes of many cultures under different conditions. The objective is to eventually process algae bio-oils in ExxonMobil refineries to supplement crude oil as the raw material to manufacture gasoline, diesel, aviation fuels and marine fuels. We are also researching potential applications for chemicals and lubricants. Algae biofuel research and development is a long-term endeavor that could take decades to commercialize at scale. In this partnership, we are working to build on our significant progress since beginning this work in 2009. “Nature has provided us with a great potential for improvement, and there are many strains of algae that have adapted to work in different environments. We want to determine how they do this and which genes are responsible. Then, we can potentially combine traits to make strains that are more efficient under harsh conditions.” David Kramer Photosynthesis and bioenergetics professor, MSU-Department of Energy Plant and Research Laboratory

Our advanced biofuels research includes joint research collaborations with Synthetic Genomics Inc., Renewable Energy Group, the Colorado School of Mines, Michigan State University, Iowa State University, Northwestern University and the University of Wisconsin. For additional information on biofuel initiatives in 2015, see the adjacent Up Close.

Energy investment in advanced biofuels

Carbon capture and sequestration Carbon capture and sequestration (CCS) is the process by which CO 2 gas that would otherwise be released into the atmosphere is captured, compressed and injected into under- ground geologic formations for permanent storage. With a working interest in approximately one-third of the world’s total CCS capacity, ExxonMobil is a leader in one of the most important next-generation low-carbon technologies. In 2015, we captured 6.9 million metric tons of CO 2 for sequestration. ExxonMobil believes the greatest opportunity for future large- scale deployment of CCS will be in the natural gas-fired power generation sector. While CCS technology can be applied to coal-fired power generation, the cost to capture CO 2 is about twice that of natural gas power generation. In addition, because coal-fired power generation creates about twice as much CO 2 per unit of electricity generated, the geological storage space required to sequester the CO 2 produced from coal-fired generation is about twice that associated with gas-fired generation. ExxonMobil is conducting proprietary, fundamental research to develop breakthrough carbon capture technologies that have the potential to be economically feasible without government subsidies, standards or mandates. Environmental life cycle assessments Every product has the potential to impact the environment. These impacts can be associated with use of the product itself, the manufacturing process or the acquisition of raw materials used to make the product. As a result, a holistic estimate of a product’s environmental impact should reflect its entire life cycle.

Our LaBarge gas plant in Wyoming contributes to the total carbon dioxide ExxonMobil captures for sequestration each year.

To help direct our research efforts, we use in-house experts and tools to conduct environmental life cycle assessments of emerging products and activities. In doing so, we are able to assess which technologies have the potential to deliver the game-changing results that will be needed to transition the energy system to lower-emissions solutions. ExxonMobil researchers also collaborate with researchers at national laboratories and universities around the globe to advance the science of life cycle assessments. In recent years, we have developed new approaches for quantifying environmental impacts associated with energy systems, and published our findings in prestigious peer-reviewed journals. Peer-review and collaboration with external scientists enhance dialogue with the academic research community and bring external expertise and perspective to ExxonMobil life cycle assessments, supporting sound science both within the company and in the greater scientific community.

Managing climate change risks exxonmobil.com/citizenship

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