ADNOC has entered into a strategic partnership with ExxonMobil, acquiring a 35% equity stake in ExxonMobil’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, US.
The project represents a major investment in US energy production and the global energy transition. It aims to reduce emissions in hard-to-decarbonise sectors such as industry, energy, and transportation while meeting the growing demand for lower-carbon fuels. The facility, expected to be the world’s largest of its kind, will produce up to 1 billion cubic feet of low-carbon hydrogen daily and more than 1 million tonnes of low-carbon ammonia annually, with 98% of carbon dioxide removed.
A final investment decision (FID) is set for 2025. Depending on regulatory approval, the facility is projected to start operations by 2029.
“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,” said Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of the Abu Dhabi National Oil Company (ADNOC). “We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonise heavy-emitting sectors.”
The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production.
“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,” stated Darren Woods, Chairman and CEO of ExxonMobil.
ADNOC also plans to support local community initiatives in Baytown after the FID, which are in line with its sustainability and education goals.
