ExxonMobil has announced it has signed an agreement for a carbon capture project.

The deal with FuelCell Energy aims to develop a technology that will capture Carbon Dioxide (CO2) from power plants through a new application of carbonate fuel cells.

The oil firm claims the integration of carbonate fuel cells and natural gas-fired power generation will help capture CO2 more efficiently than existing conventional technologies.

That’s due to an increase in electrical output using the fuel cells, which generate power, it added.

It believes the technology has the potential to “substantially” reduce costs associated with carbon capture for natural gas-fired power generation.

ExxonMobil and FuelCell Energy will initially focus on how to increase efficiency in separating and concentrating CO2 from the exhaust of natural gas turbines for one to two years.

Depending on the results, the second phase will test the technology for a further two years in a small-scale pilot project prior to integrating it at a larger-scale pilot plant.

Vijay Swarup, Vice President for Research and Development at ExxonMobil Research & Engineering Company said: “Advancing economic and sustainable technologies to capture carbon dioxide from large emitters such as power plants is an important part of ExxonMobil’s suite of research into lower emissions solutions to mitigate the risk of climate change.

“Our scientists saw the potential for this exciting technology for use at natural gas power plants to enhance the viability of carbon capture and sequestration while at the same time generating additional electricity. We sought the industry leaders in carbonate fuel cell technology to test its application in pilot stages to help confirm what our researchers saw in the lab over the last two years.”