Abu Dhabi National Oil Company (ADNOC) and ExxonMobil Corporation have signed a strategic partnership in which the former will acquire a 35 per cent equity stake in ExxonMobil’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, US.
The facility will be the world’s largest of its kind upon startup. It will produce up to 1 billion cubic feet daily of low-carbon hydrogen, which will be near carbon-free. The output will have approximately 98 per cent of carbon dioxide removed along with more than 1 million tonnes of low-carbon ammonia per year. A final investment decision (FID) is likely in 2025 with anticipated startup in 2029.
Collaboration is key
Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, witnessed the signing of the partnership. He emphasized the importance of the collaboration in supporting the UAE’s efforts to ensure the security and sustainability of the global energy sector, thus strengthening the UAE’s position as a global producer and supplier of low-carbon hydrogen.
The agreement represents a significant investment in US energy production and the global energy transition, aiming to 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.
Expanding portfolio
“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. Therefore, 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,” said Dr Sultan 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.
Darren Woods, ExxonMobil Chairman and CEO, said: “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.”
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