Abu Dhabi National Oil Company (ADNOC) has entered into an agreement to acquire a 35% equity stake in ExxonMobil Corporation’s planned low-carbon hydrogen and ammonia production facility in Baytown, Texas.
The agreement, overseen by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, represents an investment in the United States’ energy production and the global energy transition.
The facility is projected to generate up to 1 billion cubic feet daily of low-carbon hydrogen, with 98% of carbon dioxide removed, and over 1 million tons of low-carbon ammonia per year.
The final investment decision (FID) is expected in 2025, and operations are expected to begin in 2029.
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Dr. 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.”
He added, “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.”
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The Baytown facility aims to reduce greenhouse gas emissions across hard-to-decarbonize sectors, such as energy, industry, and transportation.
Advanced carbon capture and storage (CCS) technologies will be employed to minimize emissions related to hydrogen production.
The project is expected to create jobs in the US, support community development initiatives, and bring economic benefits to Baytown, Houston, and Texas.
Following the FID for the project, ADNOC plans to support ongoing community initiatives and ensure that they provide both environmental and socio-economic benefits, aiming for a more sustainable future.