Yahoo Finance Greening the Black Gold: 3 Energy Stocks to Gain From CCS Projects
Carbon capture and storage (CCS) initiatives are pivotal in combating climate change as they involve intercepting carbon dioxide (CO2) from industrial activities and power plants, effectively averting its release into the atmosphere. These projects usually encompass three primary phases: capture, transportation and storage. Consequently, after capturing CO2 from industrial sources, it is transported to an appropriate storage location, where it is injected deep underground into geological formations.
CCS initiatives have been deployed in diverse global locations, with prominent examples being the Quest CCS project in Canada, the Sleipner CCS project in Norway and the Petra Nova CCS project in the United States. These endeavors showcase the viability and efficacy of CCS technology in curbing CO2 emissions and addressing climate change.
Therefore, closely monitoring oil and gas stocks engaged in CCS projects appears to be a prudent strategy for investors interested in companies balancing environmental considerations within the conventional energy sector. Currently, investors may keep an eye on three major energy companies - Exxon Mobil Corporation XOM, Chevron Corporation CVX and Shell plc SHEL - all actively participating in CCS endeavors. Each of the stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks Embracing CCS for a Greener Future
ExxonMobil, with a steadfast commitment to reducing greenhouse gas emissions, actively participates in multiple CCS projects worldwide. Among these initiatives is the LaBarge Carbon Capture Project in Wyoming, USA. Here, CO2 emissions from natural gas processing facilities are captured and securely stored underground as part of XOM's comprehensive approach to carbon management.
ExxonMobil, in Australia, collaborates as a partner with 25% interest in the Gorgon Project, which encompasses the establishment of a large-scale CCS facility aimed at capturing CO2 emissions generated from natural gas processing and subsequently sequestering them underground.
Chevron is also investing in research and development to advance CCS technologies. In the Gorgon Project, CVX is also a partner with an operatorship interest of 47.3%. Importantly, the Gorgon CCS system effectively stops millions of tonnes of greenhouse gases from being released into the atmosphere.
Shell is actively engaged in various CCS projects globally. A significant example is the Quest CCS project, located in Alberta, Canada, which captures CO2 emissions from the Scotford Upgrader, a facility that processes oil sands bitumen into synthetic crude oil.
Another notable example is the Northern Lights project, where Shell, along with other partners, is investing. This initiative aims to capture CO2 emissions from various industrial sources, transport the CO2 by ship to an onshore terminal and subsequently inject it into offshore geological formations for permanent storage.
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