U.S. energy major ExxonMobil and French industrial gas supplier Air Liquide have entered an agreement that is expected to support the production of low-carbon hydrogen and low-carbon ammonia at ExxonMobil’s Baytown, Texas facility, in the U.S.
According to ExxonMobil, the agreement will enable the transportation of low-carbon hydrogen through Air Liquide’s existing pipeline network. Additionally, Air Liquide will build and operate four large modular air separation units (LMAs) to supply 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen daily to the facility. The LMAs will primarily use low-carbon electricity to reduce the project’s carbon footprint.
Partnering with Air Liquide, ExxonMobil said the company aims to enable the growth of a low-carbon hydrogen market along the U.S. Gulf Coast to help industrial customers decarbonize their operations.
Dan Ammann, President of ExxonMobil Low Carbon Solutions, commented: “Momentum continues to build for the world’s largest low-carbon hydrogen project and the emerging hydrogen market. This partnership with Air Liquide further strengthens our Baytown project by enabling hydrogen distribution through existing networks and securing key feedstocks.”
To note, ExxonMobil’s planned hydrogen production facility is expected to produce 1 billion cubic feet of low-carbon hydrogen daily and more than 1 million tons of ammonia annually while capturing more than 98% of the associated CO2 emissions.
It is scheduled to commence production in 2028, with the final investment decision (FID) expected in 2024, subject to stakeholder support, regulatory permitting and market conditions.
In March 2024, ExxonMobil concluded a framework agreement with Japanese major JERA to jointly explore the development of the project. As a part of it, ExxonMobil revealed that the two parties will explore JERA’s ownership participation in the project. Moreover, the deal includes JERA’s procurement of low-carbon ammonia for demand in Japan.