Benzinga | Feb 2, 2021 04:15PM EST

ExxonMobil Announces New Business to Tackle Carbon Emissions, Reiterates FuelCell Collaboration

On his first day as President, Joe Biden signed an executive order to rejoin the Paris Climate Accord. U.S. energy companies must now abide by the climate goals outlined in the agreement to become carbon-free by 2035.

What Happened: On Monday, ExxonMobil (NYSE:XOM) announced the creation of a new business, ExxonMobil Low Carbon Solutions. The new company will collaborate with FuelCell Energy Inc. (NSDAQ: FCEL) to advance carbonate fuel cell technology and Global Thermostat to capture CO2 from the air.

ExxonMobil Low Carbon Solutions plans to first tackle carbon capture and storage to meet the agreements outlined in the Paris Accord and then to create 20 new opportunities to help with large scale carbon reduction.

Why It Matters: ExxonMobil said it plans to continue its work with FuelCell, as it is "a global leader in the design, manufacture, operation and service of ultra-clean, efficient and reliable fuel cell power plants."

In collaboration with FuelCell and with many other partnerships in the industry, ExxonMobil said it is focused on developing technology to capture carbon being released from the industrial, power generation and transportation industries and storing it securely to inhibit the effects of emissions on the environment.

What's Next: ExxonMobil is evaluating multiple new collaborations and projects throughout the U.S. and the world to collect and store CO2 emissions. It is currently assessing or working on projects in the Netherlands, Belgium, Scotland, Singapore and Qatar.

FCEL, XOM Price Action: FuelCell shares lost 2.06% Tuesday, closing at $21.43, while Exxon shares gained 1.58% to $45.63.