Marubeni and ExxonMobil Partnership: Pioneering Global Low-Carbon Energy Supply Chain
Key Ideas
  • Marubeni signs a long-term offtake agreement with ExxonMobil to purchase low-carbon ammonia from the upcoming Baytown facility, supporting Kobe Power Plant's decarbonization efforts.
  • ExxonMobil's Baytown facility aims to be the largest low-carbon hydrogen and ammonia plant globally, producing carbon-free hydrogen and low-carbon ammonia annually.
  • The partnership strengthens energy ties between the U.S. and Japan, supporting Japan's decarbonization goals and creating a global supply chain for low-carbon ammonia.
  • Marubeni plans to drive decarbonization efforts in Japan across various industries, including power, steel, chemicals, and transportation, through the use of low-carbon ammonia.
Marubeni Corporation has entered a significant partnership with ExxonMobil, signing an offtake agreement to purchase low-carbon ammonia from ExxonMobil's upcoming Baytown facility in Texas. This initiative supports the decarbonization goals of the Kobe Power Plant, a subsidiary of Kobe Steel, Ltd., which aims to co-fire low-carbon ammonia with existing fuels by Japan's fiscal year 2030. The Baytown facility, once operational, is expected to be the world's largest low-carbon hydrogen and ammonia plant, producing carbon-free hydrogen and over 1 million tonnes of low-carbon ammonia annually. Marubeni has also agreed to acquire an equity stake in ExxonMobil’s project, enhancing its position in the global clean energy supply chain. This partnership strengthens energy ties between the U.S. and Japan, supporting Japan's energy transition and enabling decarbonization efforts in power and industrial projects across Japan and Southeast Asia. The collaboration aims to drive decarbonization in hard-to-abate sectors like steel, chemicals, and transportation, contributing to emissions reduction in these industries.
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