U.S. energy major ExxonMobil and its Japanese counterpart JERA have concluded a project framework agreement to jointly explore the development of a low-carbon hydrogen and ammonia production in the United States.
ExxonMobil is currently developing what is expected to be the world’s largest low-carbon hydrogen production plant at its Baytown Complex east of Houston, Texas. The plant is slated to have an annual production capacity of approximately 900,000 tonnes of low-carbon hydrogen and an annual production capacity of more than one million tonnes of low-carbon ammonia.
The facility is scheduled to commence production in 2028. More than 98% of the associated CO2 produced by the facility, or around 7 million metric tonnes per year, is expected to be captured and permanently stored.
As part of the new agreement, JERA and ExxonMobil will explore JERA’s ownership participation in the Baytown project.
The deal also includes JERA’s procurement of approximately 500,000 tonnes annually of low-carbon ammonia produced by the project for demand in Japan.
“Cooperation among leading companies is essential to establish supply chains for ammonia, hydrogen, and other products that are key to zero-emission thermal power,” said Steven Winn , JERA’s Senior Managing Executive Officer and Chief Global Strategist. “We believe that working together with ExxonMobil, who is actively promoting investment in carbon capture and storage (CCS) and hydrogen, will contribute to the transition to a global decarbonized society.”
Dan Ammann , President of ExxonMobil Low Carbon Solutions, added: “Building world-scale projects for new markets requires supply, demand and supporting regulation to all come together in sync. We appreciate JERA’s leadership in helping advance the hydrogen economy and see this agreement as an important catalyst.”
Front-end engineering and design (FEED) contract for ExxonMobil’s low-carbon hydrogen project in Baytown was awarded to Technip Energies. Danish company Topsoe will deliver its hydrogen SynCOR technology for the project.
The final investment decision (FID) is expected this year, subject to stakeholder support, regulatory permitting, and market conditions.