Exxon
Mobil Corporation (NYSE: XOM) announced today an alliance with
leading biotech company, Synthetic Genomics Inc. (SGI), to research and
develop next generation biofuels
from photosynthetic algae.
“This investment comes after several years of planning and study and is
an important addition to ExxonMobil’s ongoing efforts to advance
breakthrough technologies to help meet the world’s energy challenges,”
said Dr. Emil Jacobs, vice president of research and development at ExxonMobil
Research and Engineering Company.
“Meeting the world’s growing energy demands will require a multitude of
technologies and energy sources. We believe that biofuel produced by
algae could be a meaningful part of the solution in the future if our
efforts result in an economically viable, low net carbon emission
transportation fuel.”
ExxonMobil Research and Engineering Company has entered into a research
and development alliance with SGI, a privately held company focused on
developing genomic-driven solutions and founded by genome pioneer, Dr.
J. Craig Venter, to develop advanced biofuels from photosynthetic
algae that are compatible with today’s gasoline and diesel fuels.
Under the program, if research and development milestones are
successfully met, ExxonMobil expects to spend more than $600 million,
which includes $300 million in internal costs and potentially more than
$300 million to SGI.
“While significant work and years of research and development still must
be completed, if successful, algae-based fuels could help meet the
world’s growing demand for transportation fuel while reducing greenhouse
gas emissions,” said Michael
Dolan, senior vice president of ExxonMobil. “Our new algae biofuels
program complements ExxonMobil’s ongoing efforts to reduce
emissions in our operations and by consumers of our products,
through both efficiency improvements and technology breakthroughs.”
ExxonMobil has invested more than $1.5 billion over the past five years
on activities that improve energy efficiency and reduce greenhouse gas
emissions. Initiatives include technologies to improve automobile
efficiency, such as tire liners that keep tires inflated longer,
advanced fuel-economy engine oil and light-weight automobile plastics.
As well, the company is researching enhanced engine efficiency, has
developed an improved lithium battery separator film for hybrid electric
cars, and sponsors breakthrough research into ways to improve solar
energy, biofuels and carbon capture and storage.
“The real challenge to creating a viable next generation biofuel is the
ability to produce it in large volumes which will require significant
advances in both science and engineering,” said Venter, CEO of SGI. "The
alliance between SGI and ExxonMobil will bring together the
complementary capabilities and expertise of both companies to develop
innovative solutions that could lead to the large scale production of
biofuel from algae.”
ExxonMobil’s engineering and scientific expertise will be utilized
throughout the program, from the development of systems to increase the
scale of algae production through the manufacturing of finished fuels.
Added Jacobs: “After considerable study, we have determined that the
potential advantages and benefits of biofuel from algae could be
significant. Among other advantages, readily available sunlight and
carbon dioxide used to grow the photosynthetic algae could provide
greenhouse gas mitigation benefits. Growing algae does not rely on fresh
water and arable land otherwise used for food production. And lastly,
algae have the potential to produce large volumes of oils that can be
processed in existing refineries to manufacture fuels that are
compatible with existing transportation technology and infrastructure.”
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and gas
company, uses technology and innovation to help meet the world’s growing
energy needs. ExxonMobil holds an industry-leading inventory of
resources, is the largest refiner and marketer of petroleum products,
and its chemical company is one of the largest in the world. For more
information, visit www.exxonmobil.com.
About Synthetic Genomics Inc.
SGI, a privately held company founded in 2005, is dedicated to
developing and commercializing genomic-driven solutions to address
global energy and environment challenges. Advances in synthetic genomics
present limitless applications in a variety of product areas including:
energy, chemicals and pharmaceuticals. The company's main research and
business programs are focused on major bioenergy areas: designing
advanced biofuels with superior properties compared to ethanol and
biodiesel; harnessing photosynthetic organisms to produce value added
products directly from sunlight and carbon dioxide; developing new
biological solutions to increase production and/or recovery rates of
subsurface hydrocarbons and developing high-yielding, more disease
resistant and economic feedstocks. For more information, go to www.syntheticgenomics.com.
CAUTIONARY STATEMENT: Business plans and expectations discussed in this
release are forward-looking statements. Actual future results, including
program plans, expenditures and schedules, and the development and
commercialization of new technology and biofuels could differ materially
due to changes in market conditions; regulatory developments;
technological developments; technical or operating factors; the outcome
of commercial negotiations; and other factors discussed under the
heading "Factors Affecting Future Results" in the "Investors" section of
our website (www.exxonmobil.com)
and in Item 1A of our most recent Form 10-K.
