Exxon Mobil's scientists warned top executives in early 2020 that its $500 million algae biofuels program was failing to meet its goals outside the laboratory, even as the oil giant promoted the technology to investors as a near-term solution more prolific than sugarcane or palm oil, according to a Wall Street Journal investigation.

Documents reviewed by the Journal show Exxon's scientists delivered a grim assessment to a strategic-planning executive in February 2020, highlighting the project's shortcomings. A week later, however, Exxon told investors algae could become a more prolific source of biofuel than agricultural products, a claim that alarmed the scientists who disagreed with the presentation of the data. The internal presentation and other documents reveal executives knew the project wasn't performing as promised, despite continuing to tout it to investors.

The revelation underscores a significant disconnect between Exxon's internal scientific assessment and its external investor communications regarding its algae biofuels venture, raising questions about the company's transparency and the viability of its alternative energy strategy.