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ExxonMobil boss wants carbon price to double

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ExxonMobil boss wants carbon price to double

The Chief Executive Officer of ExxonMobil, Darren Woods, has called for an increment in Carbon price, to enable more investors come into the market, insinuating that the current $50 per tonne is not enough.

Companies trade carbon dioxide after they capture (and store) it from fossil fuels in industrial plant or from production site of businesses like cement. The process is called carbon capture and storage (CCS).

After the storage, companies convert it into liquidity, then use pipelines to transport the product. Oil firms often use the product by injecting it into oil and gas reservoirs to enhance extraction or for oil recovery.

Read also: ExxonMobil plans Bitcoin mining in Nigeria

Woods said the price of the commodity needs to rise to about $100, as the technology used to capture and store the carbon dioxide is the holy grail. He said by 2050, the market value of the carbon market will be $4 trillion.

He explained that should the cost surge, innovations would emerge in form of technology in the clean energy market, “if you can overcome some of those technology hurdles, get your cost down, you’ve got a technology then that can address this in a very cost-efficient way”, he was quoted in a Oilprice report on Thursday.

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