Exxon Mobil and Marubeni Forge Low-Carbon Ammonia Deal for Japan
Key Ideas
  • Exxon Mobil and Marubeni signed a long-term offtake agreement for supplying 250,000 metric tons of low-carbon ammonia annually, aiming to reduce emissions globally.
  • The ammonia will be produced using hydrogen from a potentially largest low-carbon hydrogen facility in Baytown, Texas, pending final investment decision.
  • The deal supports Japan's decarbonization goals by utilizing American-produced natural gas, creating jobs, and indicating a move towards a global market for low-carbon ammonia.
  • Marubeni also agreed to acquire a stake in Exxon's hydrogen and ammonia facility, showcasing a strong partnership for strategic decarbonization efforts in Japan and Southeast Asia.
Exxon Mobil and Marubeni have entered a significant long-term offtake agreement to supply 250,000 metric tons of low-carbon ammonia annually, leveraging a potentially largest low-carbon hydrogen facility in Baytown, Texas. The deal, contingent on Exxon's final investment decision, aims to support global emission reduction efforts by utilizing American natural gas to create low-carbon ammonia for Japan. This partnership signals a positive step towards decarbonization, with plans to broaden hydrogen applications beyond petroleum refining and ammonia production. Most of the produced low-carbon ammonia is destined for the coal-fired Kobe Power Plant in Japan to co-fire with existing sources, contributing to emission reduction initiatives. Marubeni's commitment includes acquiring a stake in Exxon's hydrogen and ammonia facility, laying the groundwork for continued collaboration in decarbonization projects. Additionally, the article touches on other renewable energy news, highlighting the substantial growth in sustainable aviation fuel and biofuels production in the U.S., as well as the achievement of net-negative carbon emissions by HutanBio's microalgal biofuel technology.
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