Exxon Mobil Corp said it bought a 49.9% stake in Norwegian biofuels company Biojet AS, as it looks to grow investments in its low-carbon business to meet its targets for reducing greenhouse gas emissions.
Investors and governments have been mounting pressure on energy companies to fight climate change, worsened by carbon emissions from fossil fuels. In March, a hedge fund forced Exxon to add new board members who could help it confront the issue better.
Exxon said the deal, the financial details of which it refused to disclose, will allow it to purchase as much as 3 million barrels of Biojet's biofuels per year. Biofuels can be used in passenger vehicles and heavy trucks.
Biojet plans to develop up to five facilities to produce biofuels from forestry and wood-based construction waste, and expects commercial production to begin in 2025 at a manufacturing plant to be built in Follum, Norway.