Adnoc takes 35% stake in ExxonMobil’s low-carbon hydrogen/ammonia project in US

State-owned petchem firm Adnoc will acquire a 35% equity stake in US firm’s ExxonMobil Corporation’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, the recent signing of the agreement.

The agreement represents a significant investment in the US energy production and the global energy transition. It will help reduce greenhouse gas emissions across hard-to-decarbonize sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels, and accelerate a net-zero future.

Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be the world’s largest of its kind upon start-up, capable of producing up to 1 billion cubic feet (bcf) daily of low-carbon hydrogen, which is virtually carbon-free with approximately 98% of carbon dioxide (CO2) removed and more than 1 million tonnes of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated start-up in 2029.

The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. Creating US jobs and supporting community development initiatives, the project’s construction will also bring substantial economic benefits to Baytown, the Houston area and Texas.

Following FID for the project, Adnoc says it intends to support ongoing community initiatives in the Baytown area, in line with the company’s commitment to sustainability and education in the locations where it operates.