ExxonMobil Corporation XOM and Synthetic Genomics Inc. have initiated a new phase in their joint algae biofuel research program. Through the study, the company intends 10,000 barrels of algae biofuel per day by 2025.
ExxonMobil’s assumption is based on the research carried out till date and emerging technical capability. To progress toward large-scale production, extra work is required. As the study advances, the companies continue to perform basic research on algae biology in their laboratories.
The scope of the new phase comprises an outdoor field study that will raise naturally occurring algae in numerous contained ponds in California. Better understanding of the fundamental engineering parameters including viscosity and flow will be facilitated from the research. These parameters are difficult to imitate in a lab. The potential commercial deployment of this technology largely depends on the outcome of this research.
Subsequent to the companies’ years of fundamental biological research into accepting and enhancing algae oil production, outdoor research will follow.
ExxonMobil and Synthetic Genomics have been researching jointly since 2009 to develop oil from algae that could be substituted as a renewable, lower-emission fuel to traditional transportation ones.
ExxonMobil also partnered with universities, government laboratories and other companies to perform a wide range of research on advanced biofuels.
In 2017, ExxonMobil and Synthetic Genomics got a breakthrough research published in Nature Biotechnology that lead to a modified algae strain which more than doubled oil content without considerably restraining growth, a key challenge along the path to commercial scalability.
Transportation-related global energy demand is estimated to grow about 25% through 2040. Thereby, a cut in emissions from the transportation sector will play a significant role in reducing global greenhouse gas release.
Additionally, other researches by ExxonMobil include emission-reducing technologies, including carbon capture and sequestration. The company has invested about $8 billion since 2000 to build and deploy lower-emission energy solutions in its operations.
During the last three months, ExxonMobil’s shares have lost 7.7% compared with the industry ‘s 1.1% decline.
Zacks Rank & Key Picks
ExxonMobil carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Occidental Petroleum Corp. OXY , Pioneer Natural Resources Company PXD and ConocoPhillips COP . All these stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here .
Houston, TX-based Occidental Petroleum Corp. is an integrated oil and gas company. The company delivered an average positive earnings surprise of 24.57% in the preceding four quarters.
Headquartered at Irving, TX, Pioneer Natural Resources is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 66.92% in the preceding four quarters.
ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. The company delivered a positive earnings surprise of 144.45% in the preceding four quarters.
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