ADNOC has agreed to take a 35% equity stake in ExxonMobil’s blue hydrogen and ammonia project in Texas, the US.
Located in Baytown, the facility could produce up to 900,000 tonnes of hydrogen and over one million tonnes of low-carbon ammonia per year. The two companies now expect a final investment decision (FID) to be made next year, ahead of start-up in 2029.
Following a successful FID, the Abu Dhabi National Oil Company (ADNOC) plan to support “ongoing community initiatives in the Baytown area, in line with the company’s commitment to sustainability and education in the locations where it operates.”
The complex is subject to supportive government policy and necessary regulatory permits, leveraging carbon capture and storage (CCS) technologies combined with hydrogen production.
However, H2 in March that US trade associations warned the US’ current Inflation Reduction Act (IRA) clean hydrogen production tax credit (PTC) rules could jeopardise blue hydrogen projects due to upstream emission assumptions.
Read more:45V emissions calculation rules could jeopardise blue hydrogen projects, associations warn
The modelling for steam methane reforming with CCS estimated a lifecycle emissions intensity of 4.6kgCO2e/kg of hydrogen based on a 96.2% CO2 capture rate. Autothermal reforming (ATR) CCS was forecasted at 5.7kgCO2e/kg of hydrogen at a 94.5% capture rate.
Exxon selected Topsoe’s SynCOR™ carbon capture tech for the initiative, which is understood to capture more than 98% of CO2.
Read more:Air Liquide backs ExxonMobil’s blue hydrogen mega project awaiting FID
Additionally, Air Liquide agreed to supply air separation units to supply 9,000 tonnes of oxygen and 6,500 tonnes of nitrogen to the facility daily.
Nevertheless, ADNOC’s Group CEO and Managing Director, Dr Sultan Ahmed Al Jaber, the Minister of Industry and Advanced Technology, believes the 35% stake will allow the firm to grow its portfolio of low-carbon energy sources and deliver on its growth strategy.
“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,” he said.
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.”
