ExxonMobil has signed a project framework agreement with Japan’s Mitsubishi for participation in its proposed hydrogen and ammonia facility in the US state of Texas.
Under the agreement, the companies will continue discussions on Mitsubishi’s acquisition of low-carbon ammonia and its potential investment in the project.
Once operational, the Baytown facility is expected to become the largest of its kind in the world, with a production capacity of up to one billion cubic feet per day (bcf/d) of low-carbon or blue hydrogen.
According to the announcement, the plant will produce nearly carbon-free hydrogen, capturing around 98% of CO₂ emissions, and produce more than one million tonnes of low-carbon ammonia annually by 2030.
Mitsubishi intends to utilise the ammonia in Japan for power generation, process heating and various industrial operations.
To facilitate trans-shipment, Mitsubishi plans to transform part of its liquefied petroleum gas (LPG) terminal into an ammonia terminal.
With a focus on serving the Shikoku and Chugoku regions of Japan, this enhanced facility will provide low-carbon ammonia for various industrial purposes.
Mitsubishi has formed a 'Council for Utilising Namikata Terminal as a Hub for Introducing Fuel Ammonia'. Additionally, the Japanese company plans to collaborate with Idemitsu Kosan for joint equity and ammonia offtake from ExxonMobil’s facility.
ExxonMobil low carbon solutions president Dan Ammann said: “We look forward to furthering our leadership position, alongside Mitsubishi Corporation, to advance low-carbon hydrogen and ammonia globally, helping the world achieve a lower emission future.”
Mitsubishi environmental energy group CEO Masaru Saito said: “We are excited to be closely collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains that will bridge the US and Japan.
“We are also working with Idemitsu Kosan, which is developing an ammonia hub near ours and intends to participate in ExxonMobil’s hydrogen facility with us. Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors’ transition to clean energy.”
Last week, Abu Dhabi National Oil Company agreed to acquire a 35% stake in Exxon’s Baytown facility for an undisclosed sum.
