Exxon Turns Up The Heat - Pushes White House For Gas-Hydrogen Subsidy Approval: Report

Exxon Mobil XOM is fervently courting the Biden administration to allow hydrogen made from natural gas to qualify for the juiciest subsidies.

Under President Joe Biden's landmark climate legislation, these plush subsidies are flaunting billions in tax credits, luring industries to help phase out fossil fuels, according to a report by Bloomberg.

Not to forget, California had sued the company recently on accusations of concealing the dangers of fossil fuels for decades, resulting in immense climate change-related damages. 

Read More: California Sues Exxon, Shell And BP Over 'Shameful' Deception: 'Sickens You To Your Core'

"We are going to end up spewing billions of dollars of subsidies to extremely carbon-polluting projects," said Rachel Fakhry, a policy director at the Natural Resources Defense Council, as noted by Bloomberg.

The company is laser-focused on Washington's "key decision makers," including Democratic dignitaries, Treasury Department top brass, and influential think tanks, the report added, citing an internal memo.

The company's lobbying targets included Secretary of Energy Jennifer Granholm, White House Climate Advisor Ali Zaidi, Senate Majority Leader Chuck Schumer and Democratic Senator Joe Manchin, Bloomberg added.

Exxon Chief Executive Officer Darren Woods met last week with White House senior clean energy adviser John Podesta to make the case himself, the report added, citing people familiar with the matter.

While the subsidies are made to advance an alternative to fossil fuels, Exxon contends it can produce hydrogen from natural gas without discharging significant amounts of carbon dioxide. 

The company thinks the fuel it can make is as environmentally friendly as hydrogen from water and green energy. 

So, Exxon should get the highest tax benefit from the law.

Matt Furman, Exxon's vice president of public and government affairs, told Bloomberg in an interview that XOM is sure they can make very clean hydrogen. He added that government officials support their claims.

Also Read: Dismantling Petro-masculinity: Can BP Challenge Big Oil's Legacy Of Hiring Male CEOs?

Price Action: XOM shares are trading higher by 0.38% to $117.77 on the last check Wednesday.