Abu Dhabi National Oil Company (ADNOC) and U.S. major ExxonMobil have signed an agreement under which ADNOC will acquire a 35% equity stake in ExxonMobil’s low-carbon hydrogen and ammonia production facility in Baytown, Texas, U.S.
According to ExxonMobil, the agreement will help reduce greenhouse gas (GHG) emissions across hard-to-decarbonize sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels and accelerate a net-zero future. The Texas facility is expected to produce 1 billion cubic feet of low-carbon hydrogen daily and more than 1 million tons of ammonia annually while capturing more than 98% of the associated CO2 emissions. A final investment decision (FID) is expected in 2025 with an anticipated startup in 2029.
ExxonMobil said the facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production, adding that by creating U.S. jobs and supporting community development initiatives, the project’s construction will also bring economic benefits to Baytown, the Houston area and Texas.
Following FID for the project, ADNOC intends to support ongoing community initiatives in the Baytown area, in line with the company’s commitment to sustainability and education in the locations where it operates.
Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group’s CEO, commented: “This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy. We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonize heavy-emitting sectors.”
Darren Woods, ExxonMobil’s Chairman and CEO, stated: “This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we’re pleased to add ADNOC’s proven experience and global market insights to our Baytown facility.”
To remind, in 2024, ExxonMobil entered agreements with French industrial gas supplier Air Liquide and Japanese energy major JERA regarding the Texas low-carbon hydrogen and low-carbon ammonia project.
Partnering with Air Liquide, ExxonMobil said the company aims to enable the growth of a low-carbon hydrogen market along the U.S. Gulf Coast to help industrial customers decarbonize their operations.
As for the deal with JERA, the U.S. major revealed that the two parties will explore JERA’s ownership participation in the project. Moreover, the deal includes JERA’s procurement of low-carbon ammonia for demand in Japan.