ExxonMobil awards FEED contract for low-carbon hydrogen project

ExxonMobil Corp plans to start up operations at its low-carbon hydrogen plant in Baytown, Texas, U.S.A., in the 2027-2028 timeframe. It will be the world’s largest low-carbon hydrogen production facility, targeting one billion cubic feet of low-carbon hydrogen per day.

On January 30, the U.S.-based energy major announced that it has awarded a contract to Technip Energies who will be responsible for the next stage of front-end engineering and design (FEED) of the low-carbon hydrogen project.

A final investment decision (FID) for the project is expected by 2024, subject to stakeholder support, regulatory permitting, and market conditions.

More than 98% of the associated CO2 produced by the facility, or around 7 million metric tons per year, is expected to be captured and permanently stored. The carbon capture and storage network being developed for the project will be made available for use by third-party CO2 emitters in the area.

Offtake agreements are under discussion with third-party customers, ExxonMobil said. 

“This project allows us to offer significant volumes of low-carbon hydrogen and ammonia to third-party customers in support of their decarbonisation efforts,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “In addition, the project is expected to enable up to a 30% reduction in Scope 1 and 2 emissions from our Baytown integrated complex, by switching from natural gas as a fuel source to low-carbon hydrogen.”

ExxonMobil will pair the world’s largest low-carbon hydrogen facility with the largest olefins plant in the United States to deliver more sustainable, lower-emissions products.

ExxonMobil has allocated USD7 billion for hydrogen, carbon capture and biofuels projects between 2022 and 2027.