ExxonMobil's Long-Term Ammonia Deal Boosts Hydrogen Plant in Texas
Key Ideas
- ExxonMobil secures a long-term deal to supply Marubeni Corporation with low-carbon ammonia from its hydrogen plant in Baytown, Texas.
- The Baytown plant, one of the world's largest blue hydrogen plants, aims to produce over one million tonnes of ammonia annually with 98% CO2 capture.
- Barry Engle highlights the project's potential to support Japan's decarbonisation goals, create jobs, and boost global energy through American natural gas.
- By 2030, Kobe Power Plant plans to co-fire low-carbon ammonia to reduce CO2 emissions, aligning with other companies' decarbonisation targets.
ExxonMobil, a prominent US oil and gas company, has entered a significant agreement with Marubeni Corporation, a Japanese trading firm, to supply 250,000 tonnes of low-carbon ammonia annually. The ammonia will be sourced from ExxonMobil's upcoming hydrogen plant in Baytown, Texas. Marubeni intends to use this ammonia at the Kobe Power Plant in Japan's Hyogo prefecture, owned by Kobe Steel. Additionally, Marubeni has further invested in the Baytown facility. The Baytown plant is poised to become one of the world's largest blue hydrogen facilities, with the capacity to generate over one million tonnes of ammonia per year while capturing 98% of CO2 emissions. ExxonMobil is looking to finalize the investment decision this year, subject to government support and regulatory approvals. Barry Engle, President of ExxonMobil Low Carbon Solutions, emphasizes the project's ability to assist Japan in achieving its decarbonisation objectives and create employment opportunities by leveraging American natural gas. The Kobe Power Plant aims to incorporate low-carbon ammonia into its fuel mix by 2030 to reduce CO2 emissions, a goal shared by other companies like Mitsui & Co, JFE Holdings, and Kansai Electric Power Company. Earlier this year, ExxonMobil also inked a preliminary agreement with Trammo, a French ammonia distributor, for the supply of up to 500,000 tonnes of blue ammonia from the Baytown site. This collaborative effort underscores the growing focus on sustainability, decarbonisation, and energy transition in the global energy landscape.
Topics
Blue Hydrogen
Sustainability
Investment
Energy Transition
Decarbonisation
Partnership
Carbon Capture
Ammonia
Oil And Gas
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