Carbon Sequestration Investments

Carbon Sequestration
Investments
By
www.ProfitableInvestingTips.com

https://profitableinvestingtips.com/profitable-
investing-tips/carbon-sequestration-investments
Exxon Mobil is going to make $3 billion in
carbon sequestration investments over the
next five years. Exxon Mobil has gotten a
lot of criticism for not branching out into
green energy solutions. This is their first
move towards fighting global warming and
a greener earth. Aside from buying stock
in the oil company, how can you invest in
as part of your ESG investing and profit
from this activity.

Exxon’s approach will be to capture carbon
dioxide from industrial plants and storing it
so that it does not enter the atmosphere in
the first place. There will be many ways to
reduce carbon dioxide and potential
carbon sequestration investments go
forward.

What Is Carbon Sequestration?

The short version is that carbon sequestration is
getting carbon dioxide out of the atmosphere
and putting it somewhere. The actual version is
a lot more complex as you can see by browsing
the USGS report about Baseline and Projected
Future Carbon Storage in the Great Plains. This
forty page document discusses land use,
reforestation, planting trees on unforested land,
and preserving wetlands as well as giving a nod
to technologies for storing carbon dioxide.

As noted in an informative article by
EcoWatch, there are many ways to
accomplish carbon sequestration. Planting
trees works because they take carbon out
of the air and turn it into wood. The sort of
approach that Exxon Mobil is aiming at is
already in use as EcoWatch notes in a
power plant in Decatur, Illinois by Archer
Daniels Midland, the agricultural and
ethanol-production giant.

They capture the carbon dioxide as it is
created by burning fossil fuels,
concentrate it into liquid, and inject it into
deep rock formations. Alternatively, the
CO2 can be captured and used in the
creation of plastics or concrete.

A way to sequester carbon that does not
require burying it far beneath the surface
of the earth is to create biochar, this is
partially burned material which is still rich
in carbon. This material can be spread on
agricultural land where it enriches the soil.

Direct Carbon Capture Technology

A process that shows long-term promise was developed by
a University of Arizona professor, Klaus Lachner. It
captures CO2 directly from the air which means it can be
set up anywhere. At the current time the process takes a
lot of energy and costs about $30 for each ton of CO2 it
captures. It has the potential to remove a hundred million
tons of CO2 per day from the air but that would cost $3
billion a day or about $1 trillion a year! But, this sort of
approach set up with solar or wind power could collect
CO2 day and night without using any fossil fuel or
nuclear energy to power the process.

Modern society adds about 40 billion tons of
CO2 to the atmosphere. Removing 110
million tons a day would take out 36.5
billion tons a year which would make a
serious dent in the yearly increase of CO2
in the air.

Climeworks, a Swiss company, is using this
process at the current time. Their costs at
this time make the process too expensive
but they aim to reduce how much it costs
to do this and hope to start making a dent
in global emissions by 2025.

Companies Employing Carbon
Sequestration Technology

Your carbon sequestration investments will be
targeted at companies employing one or more of
the effective technologies and developing new
ones. Today these include Exxon Mobil, NRG
Energy, Fluor Corporation, Dakota Gasification
Company, and Chevron in the USA. Carbon
Engineering Ltd. is located in Canada. Others
are Shell in the Netherlands, Total in France,
Equinor in Norway, ADNOC Group in the UAE,
and China National Petroleum Corporation in
China.

As with all developing technologies the race
may not be won by the one that invents a
process but those that adapt it and employ
it efficiently. As the USA gets back into
promoting and enforcing energy policies
aimed at reducing global warming, those
companies that best-comply with existing
regulations will also benefit the most.

For more insights and useful information
about investments and investing, visit
www.ProfitableInvestingTips.com.

Carbon Sequestration Investments

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