The UAE’s state-owned energy company, ADNOC, has agreed with ExxonMobil to buy a 35% stake in a project to produce hydrogen that will be almost carbon-free.
Low-carbon hydrogen and ammonium are seen as potential options for allowing hard-to-abate sectors to transition to a low-carbon future. The project in Baytown, Texas is expected to take natural gas produced in the US, remove 98% of the carbon, and transform it into hydrogen, which can then in turn be used to make ammonia.
Darren Woods, ExxonMobil’s Chairman and CEO, said he appreciated the Crown Prince’s:
“…support for this groundbreaking partnership. 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.”
ExxonMobil, which also makes Mobil lubricants like gear oil and grease, says the proposed facility will have the capacity to produce low-carbon hydrogen at a rate of up to a billion cubic feet per day, as well as low-carbon ammonia amounting to a million tonnes each year. It says this will help meet the anticipated demand for these low-carbon fuels as industries seek to lower their greenhouse gas emissions.
The companies expect to make a final investment decision by 2025, with production likely beginning in 2029, subject to regulatory approval and government policy being supportive for the plant, which should be the biggest of its kind in the world.
