Exxon Mobil Corp. is lobbying the Biden administration to allow hydrogen produced from natural gas to qualify for some of the most lucrative subsidies available in the President’s climate law, pushing for billions of dollars in tax credits.
Bloomberg yesterday reported that the company is targeting “key decision makers” in Washington, including Democratic lawmakers, U.S. Treasury Department officials and think tanks, according to an internal memo seen by Bloomberg. Exxon, the report said, is stepping up efforts to ensure that what it dubs as low-carbon natural gas is “properly recognized” by the Biden administration, the memo said.
Exxon Chief Executive Officer Darren Woods met last week with White House Senior Clean Energy adviser John Podesta to make the argument, according to people familiar with the matter.
While the subsidies are intended to promote an alternative to fossil fuels, Bloomberg said that Exxon is arguing it can produce hydrogen from natural gas without releasing significant amounts of carbon dioxide. The company says the result is a fuel that’s as safe for the climate, as hydrogen that’s made from water and renewable energy and that it should therefore qualify for the law’s top tax credit.
According to Bloomberg, Matt Furman, Exxon’s Vice President of Public and Government Affairs, said in an interview that the company is confident it can make hydrogen clean enough to qualify for the top level of subsidy.
