ADNOC has signed an agreement to acquire a 35% equity stake in ExxonMobil's proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas
The facility is expected to be the world’s largest of its kind upon startup, capable of producing up to one billion cubic feet (bcf) daily of low-carbon hydrogen and more than one million tons of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated startup in 2029. The facility will help reduce greenhouse gas emissions across hard-to-abate sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels, and support both companies' net zero ambitions.
The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. The project will also support US job creation and community development initiatives, bringing substantial economic benefits to Baytown, the Houston area and Texas.
Strategic investment
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.”
Darren Woods, ExxonMobil Chairman and CEO, added, “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.”
ADNOC and ExxonMobil to partner in low-carbon hydrogen facility
The agreement was witnessed by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council. (Image source: ADNOC)
