ADNOC, ExxonMobil to partner in world’s largest low-carbon hydrogen facility

ADNOC, a state-owned oil company of the United Arab Emirates, 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 production facility aims to produce up to 1 billion cubic feet per day of low-carbon hydrogen, with around 98% of carbon dioxide removed, the companies said in a joint statement, News.Az reports.

The agreement represents a significant investment in the United States’ (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.

Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be the world’s largest of its kind upon startup, capable of producing up to 1 billion cubic feet (bcf) daily of low-carbon hydrogen, which is virtually carbon-free with approximately 98% of carbon dioxide (CO2) removed and more than 1 million tons of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated startup in 2029.

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 decarbonize heavy-emitting sectors.”

The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. Creating U.S. jobs and supporting community development initiatives, the project’s construction will also bring substantial economic benefits to Baytown, the Houston area and Texas.

Darren Woods, ExxonMobil Chairman and CEO, said: “We appreciate His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’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.”

News.Az