Marubeni and ExxonMobil Partnership for Low-Carbon Ammonia Supply Chain
Key Ideas
- Marubeni Corporation and ExxonMobil agreed on a long-term offtake deal for low-carbon ammonia supply from a planned facility in Baytown, Texas.
- The partnership aims to help Japan achieve its decarbonization goals by reducing emissions from the power sector and supporting hard-to-abate sectors.
- ExxonMobil's low-carbon hydrogen and ammonia facility in Baytown is expected to produce 1 billion cubic feet per day of virtually carbon-free hydrogen and 1 million tonnes per year of low-carbon ammonia.
- The agreement signifies a positive step towards establishing a global low-carbon ammonia supply chain and promoting clean energy projects in Japan and Southeast Asia.
Japanese conglomerate Marubeni Corporation has struck a significant deal with ExxonMobil for the supply of approximately 250,000 tonnes per year of low-carbon ammonia sourced from ExxonMobil’s planned facility in Baytown, Texas. The ammonia will help Japan in reducing emissions from its power sector, aligning with the country's decarbonization goals. Marubeni has also agreed to acquire an equity stake in ExxonMobil’s Baytown facility, which is set to become one of the world’s largest low-carbon hydrogen and ammonia plants. The partnership aims to support Japan's efforts to reduce CO₂ emissions, particularly in hard-to-abate sectors like steel manufacturing and transportation. The Kobe Power Plant, a subsidiary of Kobe Steel, plans to co-fire low-carbon ammonia with existing fuels by 2030. This initiative not only contributes to emissions reduction but also strengthens the global low-carbon supply chain and promotes clean energy projects in Japan and Southeast Asia.
Topics
Utilities
Clean Energy
Investment
Partnership
Decarbonization
Global Market
Supply Chain
Emissions Reduction
Energy Supply
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