ExxonMobil and Marubeni Sign Landmark Agreement for Low-Carbon Ammonia Supply Chain
Key Ideas
- ExxonMobil to supply 250,000 tonnes of low-carbon ammonia yearly to Marubeni, supporting Japan's decarbonization goals and creating jobs.
- This partnership will establish a global low-carbon ammonia supply chain, aiming to reduce CO2 emissions and decarbonize various industries.
- The Baytown facility in Texas will be the world's largest of its kind, producing virtually carbon-free hydrogen and over 1 million tons of low-carbon ammonia annually.
- Marubeni plans to co-fire low-carbon ammonia at the Kobe Power Plant by 2030, contributing to the decarbonization of Japan's power and hard-to-abate sectors.
ExxonMobil and Marubeni have entered a significant agreement for a long-term supply of approximately 250,000 tonnes of low-carbon ammonia per year. The deal will see ExxonMobil's Baytown facility in Texas producing virtually carbon-free hydrogen and low-carbon ammonia. Marubeni intends to supply this ammonia mainly to the Kobe Power Plant, a subsidiary of Kobe Steel, Ltd., with plans to acquire an equity stake in ExxonMobil's facility. The collaboration aims to establish a global low-carbon ammonia supply chain, supporting Japan's decarbonization goals and various sectors. The facility, upon startup, is projected to be the largest of its kind globally, producing substantial amounts of low-carbon hydrogen and ammonia. This initiative aligns with Japan's target to reduce CO2 emissions by 2030, with plans to use low-carbon ammonia at the Kobe Power Plant. The partnership signifies a positive step towards energy supply, job creation, and industrial cooperation between the U.S. and Japan, emphasizing the importance of low-carbon solutions in the transition to cleaner energy sources.