Exxon to use Honeywell carbon capture technology at proposed hydrogen plant
Honeywell (NASDAQ:HON) said Wednesday its carbon capture technology will be deployed by Exxon Mobil (NYSE:XOM) at the oil producer's proposed hydrogen production facility in Baytown, Texas; financial terms are not disclosed.
Honeywell (HON) said the technology would enable Exxon (XOM) to capture ~7M tons/year of carbon dioxide per year, equivalent to emissions from 1.5M automobiles for one year.
The company said its CO2 fractionation and hydrogen purification technology lowers the cost of capturing, transporting and storing carbon dioxide, while allowing for smaller equipment and lower capital operational expenses needed to run the plant compared to existing technologies.
Exxon (XOM) expects the Baytown plant will produce 1B cf/day of hydrogen when operations are expected to begin in 2028; the fuel, which produces no emissions when burned, is targeted at heavy industries trying to switch from fossil fuels to renewable fuels.
Honeywell (HON) "looks attractive as a diversified company that continues to return value to shareholders," Dhierin Bechai writes in an analysis published recently on Seeking Alpha.