Exxon Mobil has inked a pivotal offtake agreement with Marubeni to supply 250,000 tonnes of low-carbon ammonia annually to Japan’s Kobe Power Plant for cofiring, marking a significant step in the advancement of hydrogen production. The agreement not only helps to derisk Exxon Mobil's hydrogen facility planned at its Baytown complex in Texas but also accelerates the final investment decision, which is expected in 2025. The facility is set to leverage natural gas and Carbon Capture, Utilization, and Storage (CCUS) technology to produce 1 billion cubic feet per day (Bcf/d) of blue hydrogen and 1 million metric tons per annum (mtpa) of low-carbon ammonia. By capturing 98% of CO2 emissions, the plant will meet Japan’s stringent carbon intensity threshold, enabling it to participate in the country's contract for difference (CfD) program. The lack of demand for clean hydrogen and ammonia in the U.S. has led manufacturers to explore foreign markets like Japan, where the CfD program subsidizes low-carbon production. By combining U.S. 45Q tax credits for carbon capture with Japan’s incentives, companies can improve financial viability and offer competitive pricing against traditional ammonia, thereby driving growth in the global hydrogen market. Enverus Intelligence® Research emphasizes the significance of securing international offtakers like Marubeni in expanding the scale of blue hydrogen and low-carbon ammonia production. This not only supports the decarbonization efforts in Japan’s energy sector but also enhances the competitiveness of the global hydrogen market. The move signifies Exxon Mobil's leadership in advancing blue hydrogen production and contributing to the growth and decarbonization of the energy sector.