Exxon and FuelCell Energy will jointly develop technology to reduce the cost of capturing carbon emissions from power plants.
Shares of FuelCell jumped 8 Thursday.
The companies will pursue technology that uses carbonate fuel cells to generate power while capturing carbon dioxide, which scientists say is the most prevalent greenhouse gas responsible for climate change.
Exxon's vice president for research and development, Vijay Swarup, says developing technology to clean up power plants is part of Exxon's strategy to help limit climate change.
It's a sensitive subject for Exxon Mobil Corp., based in Irving, Texas. Critics accuse the company of misleading investors and the public about the risk of climate change.
Shares of FuelCell Energy Inc., based in Danbury, Connecticut, rose 44 cents to $6.02.