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Algae Biofuels · Exxon Mobil · Greenwashing · Renewable Energy
Exxon Mobil continues to invest over $300 million in algae biofuel research with partner Synthetic Genomics Inc., making it the only major oil firm still heavily backing the technology, despite widespread skepticism from scientists and former industry partners who deem the economics unfeasible.
A decade ago, major oil companies like Shell, BP, and Chevron, along with Exxon, invested hundreds of millions in algae biofuels, hoping to decarbonize and capitalize on high oil prices. However, the high production cost, estimated by one former Cellana employee to require crude oil at $500 a barrel to compete, led most companies to abandon their projects by 2011, shifting focus to higher-value products like nutritional supplements.
Shell exited its Cellana investment in 2011, and BP stopped funding Martek/DSM, which returned to producing nutritional products. Exxon's current investment of $300 million over the past decade represents less than 1% of its 2019 capital spending of over $30 billion.
Critics, including four scientists and five former employees, label Exxon's continued commitment as "greenwashing" and a public relations move, questioning the genuine intent given the small budget allocation. Exxon and Synthetic Genomics Inc.
(SGI) CEO Oliver Fetzer maintain optimism, citing advancements in genetic technologies like Crispr and government incentives for low-carbon fuels, such as California's low carbon fuel standard. Fetzer projects algae biofuel could fetch $200 per barrel by 2025 in certain regions, arguing that crude oil prices are an irrelevant benchmark for low-carbon alternatives needed for heavy-duty transportation like ships and airplanes.
