The deal supports Exxon’s efforts to develop the world’s largest low-carbon hydrogen facility at its Baytown refining and chemical complex, despite previous delays. Hydrogen, derived from natural gas, is a clean fuel that produces only water when burned. Ammonia serves as a liquid carrier for hydrogen, facilitating its transport. Exxon plans to capture and store carbon dioxide generated during hydrogen production underground.
Barry Engle, president of low carbon solutions at Exxon, stated: “This is another positive step forward for our landmark project.” The agreement with Marubeni is conditional on Exxon’s final investment decision for the Baytown facility, expected within 2025, pending supportive government policies and regulatory approvals.
Marubeni will also acquire an equity stake in the Baytown hydrogen facility, though Exxon did not disclose the stake’s size. The partnership aims to advance low-carbon energy solutions, aligning with global demand for sustainable fuels.
The Baytown facility is designed to produce low-carbon ammonia at scale, leveraging Exxon’s expertise in energy production and carbon management. The agreement with Marubeni strengthens ties between the U.S. and Japan in the clean energy sector, promoting the adoption of hydrogen as a viable fuel source. This collaboration reflects ongoing efforts to enhance energy infrastructure while addressing environmental considerations through innovative technologies.
