Exxon Mobil Signs Deal with Marubeni for Low-Carbon Ammonia in Texas
Key Ideas
- Exxon Mobil secures its first customer for low-carbon ammonia from its blue hydrogen project in Baytown, Texas.
- Japanese firm Marubeni to receive 250,000 tons/yr of low-carbon ammonia to reduce CO2 emissions at Kobe Power Plant.
- Marubeni also takes an equity stake in the Baytown facility, contributing to the largest blue hydrogen project globally.
- The project, set to start in 2029, will have a significant production capacity of 1 Bcf/d of blue hydrogen and 1 million tons/yr of blue ammonia.
Exxon Mobil has achieved a significant milestone by finalizing a deal with Marubeni to supply 250,000 tons per year of low-carbon ammonia from its blue hydrogen project in Baytown, Texas. This agreement marks the first firm customer for the project, bringing Exxon Mobil closer to the Final Investment Decision (FID) on this groundbreaking venture. The low-carbon ammonia will be utilized by Marubeni at the Kobe Power Plant to help reduce the facility's CO2 emissions, aligning with sustainability goals. In addition to the ammonia supply, Marubeni will also have an equity stake in the Baytown facility, which is poised to be the largest blue hydrogen project globally upon commencement in 2029. With a substantial production capacity of 1 Bcf/d of blue hydrogen and 1 million tons per year of blue ammonia, the project underscores a significant step towards green energy transitions and carbon reduction in the energy sector.