ExxonMobil's Strategic Partnership for Low-Carbon Ammonia Supply and Hydrogen Development in Baytown
Key Ideas
  • Exxon Mobil Corporation has signed a long-term agreement with Marubeni for the supply of low-carbon ammonia, marking a significant step towards the development of a large low-carbon hydrogen facility in Baytown, TX.
  • The agreement involves supplying 250,000 metric tons per year of low-carbon ammonia to Marubeni and the Japanese trading house acquiring a stake in the Baytown hydrogen facility.
  • ExxonMobil's project aims to produce approximately 1 billion cubic feet per day of low-carbon hydrogen and includes carbon capture and storage initiatives to align with low-carbon goals.
  • The company's efforts to advance low-carbon energy solutions are further supported by plans to take a final investment decision on the project within the year, pending regulatory approvals and government policies.
Exxon Mobil Corporation has entered into a significant agreement with Japanese trading house Marubeni for the supply of low-carbon ammonia as part of the development of a large low-carbon hydrogen facility in Baytown, Texas. The agreement also involves Marubeni acquiring a stake in the Baytown hydrogen facility, although the specific percentage of ownership has not been disclosed. This collaboration is a key milestone for ExxonMobil's plans to create the world's largest low-carbon hydrogen facility at its Baytown chemical complex. The project, which aims to produce 1 billion cubic feet per day of low-carbon hydrogen, faces delays but receives a boost through this customer agreement. The use of low-carbon ammonia as a carrier for hydrogen allows for efficient transportation over long distances. To ensure environmental responsibility, carbon dioxide produced during the process will be captured and stored underground. ExxonMobil's strategic focus on low-carbon energy solutions is evident in its plans to move forward with the project pending a final investment decision later this year. The success of this decision hinges on regulatory approvals and government support. The overall sentiment in the article is positive, highlighting the company's commitment to advancing sustainable energy initiatives. In addition to the ExxonMobil-Marubeni partnership, the article mentions other companies in the energy sector such as Archrock Inc., Diversified Energy Company plc, and Galp Energia SGPS SA, providing insights into their respective activities and prospects within the industry.
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