ExxonMobil Signs Deal with Marubeni for Low-Carbon Ammonia Supply to Japan
Key Ideas
- ExxonMobil has agreed to supply 250,000 tonnes/year of low-carbon ammonia to Japan's Marubeni Corp for the Kobe Power Plant in Hyogo prefecture.
- Marubeni will also invest in ExxonMobil's upcoming low-carbon hydrogen and ammonia facility in Baytown, Texas.
- The Baytown plant, expected to make a final investment decision in 2025, aims to produce 1 billion cubic feet of low-carbon hydrogen daily.
- The collaboration between the companies is seen as a positive step towards establishing a global low-carbon ammonia supply chain and reducing CO2 emissions at the Kobe Power Plant by 2030.
ExxonMobil Corp has entered into a long-term agreement with Marubeni Corp to supply approximately 250,000 tonnes/year of low-carbon ammonia to the Kobe Power Plant in Hyogo prefecture, Japan. The fuel will be used by Kobe Steel Ltd's subsidiary and aims to support Japan's decarbonization goals. Additionally, Marubeni will acquire a stake in ExxonMobil's upcoming low-carbon hydrogen and ammonia facility in Baytown, Texas, as part of the collaboration. The Baytown plant, once operational, is expected to produce up to 1 billion cubic feet of low-carbon hydrogen daily, utilizing American-produced natural gas. Both companies see this partnership as a significant step towards establishing a global low-carbon ammonia supply chain. The agreement also includes plans for the Kobe Power Plant to co-fire low-carbon ammonia with existing fuel by Japan's fiscal year 2030 to reduce CO2 emissions. Financial details of the transactions were not disclosed. The companies expressed optimism about the collaboration's potential to support decarbonization efforts, boost global energy supply, and create job opportunities.
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