ExxonMobil promoted a biofuels breakthrough despite internal doubts

Internal documents reveal ExxonMobil scientists raised serious concerns about the viability of the company’s algae biofuels program even as executives continued promoting it to investors as a near-term breakthrough, The Wall Street Journal writes. 

Researchers warned in 2020 that algae struggled to produce sufficient oil outside controlled lab settings, achieving only a fraction of targeted output and requiring massive, costly infrastructure to scale.

Despite those findings, Exxon publicly highlighted the technology’s potential, projecting production levels far above internal estimates and positioning algae as a key part of its low-carbon strategy. The company spent hundreds of millions on research and advertising tied to the initiative, which became a centerpiece of its energy transition messaging.

Ultimately, the economics proved challenging, with projected costs reaching billions and far exceeding potential returns. Exxon ended its partnership with research firm Viridos in 2023, effectively winding down the effort, underscoring the broader difficulties oil majors face in scaling alternative fuels commercially.

The Wall Street Journal has the full story.