ExxonMobil and ADNOC partner on new low-carbon hydrogen facility
ADNOC will acquire a 35% equity stake in ExxonMobil Corporation’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, U.S.A. ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi.
Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be the world’s largest of its kind upon startup, 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 tons of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated startup in 2029.
Crown Prince of Abu Dhabi His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, who also chairs the Abu Dhabi Executive Council, witnessed the signing of the agreement on September 4.
The agreement represents a significant investment in the U.S. energy production and the global energy transition. It will help reduce greenhouse gas emissions across hard-to-decarbonise sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels, and accelerate a net-zero future, according to the U.S.-based energy major.
His Excellency Dr. Sultan Ahmed Al Jaber, minister of Industry and Advanced Technology and ADNOC managing director and Group CEO, said: “This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy. We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonise heavy-emitting sectors.”
The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production.
“This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we’re pleased to add ADNOC’s proven experience and global market insights to our Baytown facility,” said Darren Woods, ExxonMobil chairman and CEO.