ADNOC, ExxonMobil partner in world’s largest low-carbon H2 project
Last update: Sep 5, 2024
Abu Dhabi National Oil Company will acquire a 35% equity stake in the Baytown, Texas, facility set to convert natural gas into virtually carbon-free hydrogen.
ADNOC will acquire a 35% equity stake in Exxon Mobil Corporation’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.
The agreement represents a significant investment in the US’ energy production and the global energy transition. It will help reduce greenhouse gas emissions across hard-to-decarbonize sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels, and accelerate a net-zero future.
“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,” said Darren Woods, ExxonMobil Chairman and CEO.
The facility is expected to be the world’s largest of its kind upon startup, capable of producing up to 1 billion cubic feet daily of low-carbon hydrogen, and more than 1 million tons of low-carbon ammonia per year.
"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 decarbonize heavy-emitting sectors,” added Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.
The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production.
ADNOC intends to support ongoing community initiatives in the Baytown area, in line with the company’s commitment to sustainability and education in the locations where it operates.
