Worley has secured the engineering, procurement and construction (EPC) services for ExxonMobil’s low-carbon hydrogen and ammonia facility in Texas, the US.
The Baytown plant is expected to be the “world’s largest of its kind upon startup,” scheduled to produce up to 28.3 million metres of low-carbon hydrogen daily and nearly one million tonnes of ammonia per year.
Read more:Air Liquide backs ExxonMobil’s blue hydrogen mega project awaiting FID
The contract awarded to global engineering company Worley will be subject to a final investment decision on the facility, supportive government policy and necessary regulatory permits.
“We’re delighted to continue our strategic, global relationship with ExxonMobil in its execution of upcoming projects,” explained Chris Ashton, Worley CEO, “Particularly in delivering this EPC project on the US Gulf Coast, which contributes significantly to strengthening Worley’s backlog.”
So far this year, both Mitsubishi Corporation and ADNOC acquired stakes in the Baytown plant, which they expect to reach FID next year and start in 2029.
Read more: Mitsubishi eyes stake in ExxonMobil’s major blue hydrogen project in Texas
Blue hydrogen is forecasted to be a key energy driver in the US in 2025, with global consultancy Wood Mackenzie predicting that at least three large-scale blue hydrogen projects in the country will reach FID next year.
Exceeding 1.5 million tonnes per annum, the successful progression of financial closes would establish the US as a global leader in blue hydrogen production. It already boasts the largest post-FID blue hydrogen capacity in the world.
Read more:US blue hydrogen to gain ground in 2025 as green hydrogen faces headwinds: Wood Mackenzie
Trump’s election victory solidifies blue hydrogen outlook – Wood Mackenzie
The hydrogen market could skew more towards blue rather than green hydrogen in the next few years, with Donald Trump’s win in the US presidential election changing the calculus around the potential trajectory of US public policy.
The assessment comes from Murray Douglas, Vice-President and Head of Hydrogen Research at Wood Mackenzie, speaking at the consultancy firm’s Hydrogen Conference 2024 in London shortly after Trump’s win was confirmed.
“A Republican presidency puts parts of the Democrat-introduced Inflation Reduction Act (IRA) at risk. At this stage we cannot rule out a full repeal. There are also some risks that attach to the incoming administration introducing trade tariffs on goods entering the US,” said Douglas.
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