Federal grant for Exxon plant faces blowback

By Sean Reilly, Ellie Borst | 03/27/2024 01:49 PM EDT

“This is exactly the type of facility that federal taxpayers should not be funding,” an ex-EPA regional administrator said.

FILE - In this April 16, 2010 file photo, steam rises from towers at an Exxon Mobil refinery in Baytown, Texas. Exxon says the energy renaissance in the U.S. will continue and predicts that North America will become a net exporter of oil and gas by the middle of the next decade. The oil and gas giant’s latest long-term energy outlook, released Tuesday, Dec. 11, 2012, says the rapid growth of production in the U.S., Canada along with improved energy efficiency will lead to more oil and gas being sent overseas. (AP Photo/Pat Sullivan. File)

Steam rises from towers at an Exxon Mobil refinery in Baytown, Texas, on April 16, 2010. Exxon received a federal grant to replace natural gas with “clean hydrogen fuel” at a plant that is part of the Baytown complex. Pat Sullivan/AP

The Biden administration’s decision to steer hundreds of millions of dollars to one of the world’s top producers of fossil fuels to retool a Houston-area plant that makes a key plastics ingredient is facing stiff criticism from advocates who see a disconnect between key White House goals.

The grant for Exxon Mobil’s Baytown plant is one of 33 announced this week that could share about $6 billion in federal funding, subject to further negotiations. The Energy Department frames the funding as a groundbreaking foray into decarbonization and an effort to wean heavy industry off fossil fuels.

“This is exactly the type of facility that federal taxpayers should not be funding,” Judith Enck, a former EPA regional administrator who now heads the advocacy group Beyond Plastics, said in an email to E&E News about the Exxon plant. “We are extremely disappointed that the Biden administration continues to fund polluting, damaging facilities such as this one.”

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According to a DOE summary, Exxon is potentially in line for up to $332 million to replace natural gas with “clean hydrogen fuel” at a plant that is part of its Baytown petrochemical complex, about 25 miles east of Houston.

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