ExxonMobil Acquires Stake in Wood-based Biofuels Firm

Amid mounting pressure from the public, governments, and its own investors to take more action on climate change, ExxonMobil announced a major investment in a developer of biofuels made from wood byproducts. The Texas oil and gas giant said it purchased a 49.9% stake in Biojet AS, a Norwegian company that hopes to generate lower-emission vehicle fuels and components from forestry and wood construction waste. The company’s fuels would be able to power passenger cars and heavy trucks and could have potential applications for marine vessels and aviation in the future. The agreement allows Exxon to purchase up to 3 million barrels of fuel per year, which would be distributed in Norway and northwestern Europe through Exxon’s access to Norway’s Slagen terminal. Biojet hopes to begin commercial production at a plant outside Oslo in 2025 and eventually plans to establish five production facilities. Exxon officials said the deal would provide lower-emissions products for the transportation sector and help meet advanced fuel requirements in Norway, the U.K., and the European Union. Biofuels produced from wood waste, the company added, can cut greenhouse gas emissions by 85% over their lifecycle compared to petroleum-based diesel.