Engine No. 1 Activist Presentation Deck
Despite claimed support, ExxonMobil's long-term strategy
leaves it entirely unprepared for an actual carbon tax
ā
A meaningful cost on carbon would likely make natural gas-based power more
expensive than battery-backed solar and wind as early as 2024, and would
dramatically limit natural gas demand growth, ~40% of which is used for power,
which ExxonMobil assumes to be a growth driver
Meaningful carbon capture would have a similar impact, as the only way to pay
for it would be a charge on carbon or trillions of dollars in government incentives
$95
$80
$65
$50
$35
$20
$5
Levelized Cost of Electricity Generation in the US ($/MWh)
Battery 'Storage adder' costs
Battery-backed
Wind onshore
(2019-20)
Battery-backed Battery-backed
Solar PV
(2019-20)
Solar PV
(2040 est.)
Carbon tax cost increase
Gas CCGT
Chart Source: IEA World Energy Outlook 2020. "Storage adder" are 4-Hour Battery Storage costs at 25% of nameplate solar capacity,
as per NextEra's 'Edison Electric Institute Conference' presentation, Nov. 2020. Carbon Tax estimates for combined cycle power plant
based on a 7,000 MMBtu/MWh heat rate.
Gas CCGT
$50/MT carbon
tax regine
Gas CCGT
$75/MT carbon
tax regime
REENERGIZE
EXXON//
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