ExxonMobil, a leading global energy company, has entered into a project framework agreement with Japan’s Mitsubishi Corporation. The agreement focuses on collaborating on the development of a low-carbon hydrogen and ammonia facility in Baytown, Texas. The proposed plant is set to become the world’s largest of its kind, with a significant production capacity. It is expected to produce up to one billion cubic feet per day (bcf/d) of blue hydrogen.
Key Highlights of Hydrogen Plant Project
- The facility will capture approximately 98% of CO₂ emissions, producing nearly carbon-free hydrogen.
- By 2030, the plant is expected to produce more than one million tonnes of low-carbon ammonia annually.
- Mitsubishi plans to use the low-carbon ammonia in Japan for various applications, including power generation, process heating, and industrial operations.
- The Japanese company will transform part of its LPG terminal into an ammonia terminal to facilitate trans-shipment. The focus will be on serving the Shikoku and Chugoku regions of Japan.
- Mitsubishi has formed a ‘Council for Utilising Namikata Terminal as a Hub for Introducing Fuel Ammonia’. The company also plans to collaborate with Idemitsu Kosan for joint equity and ammonia offtake from ExxonMobil’s facility.
Dan Ammann, president of ExxonMobil low carbon solutions, expressed the company’s commitment to advancing low-carbon hydrogen and ammonia globally. He stated, “We look forward to furthering our leadership position, alongside Mitsubishi Corporation, to advance low-carbon hydrogen and ammonia globally. This partnership will help the world achieve a lower emission future.”
Masaru Saito, CEO of Mitsubishi’s environmental energy group, highlighted the significance of the collaboration between the two companies. He said, “We are excited to be closely collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains. These supply chains will bridge the US and Japan. Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors’ transition to clean energy.”
This partnership between ExxonMobil and Mitsubishi is a significant step towards the development of low-carbon hydrogen and ammonia supply chains. It contributes to the global efforts to reduce emissions and combat climate change.
About ExxonMobil and Mitsubishi
ExxonMobil is one of the world’s largest publicly traded energy companies, with a strong presence in the oil and gas industry. The company has been investing in low-carbon solutions to address the challenges of climate change. ExxonMobil aims to meet the growing demand for clean energy.
Mitsubishi Corporation is a leading Japanese multinational company with diverse business interests, including energy, infrastructure, and industrial finance. The company has been actively pursuing opportunities in the low-carbon energy sector. Mitsubishi’s goal is to contribute to a more sustainable future.
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