Mitsubishi Corporation is exploring the offtake of low-carbon ammonia and equity participation in ExxonMobil’s blue hydrogen production project in the US.
Located in Baytown, Texas, the plant is expected to produce more than one million tonnes of ammonia per year, with a final investment decision (FID) anticipated next year ahead of a 2029 startup.
Mitsubishi aims to convert part of its liquified petroleum gas (LPG) terminal into an ammonia terminal for transhipment, which will then supply the fuel to power generation, process heating and other industrial activities, mainly in the Shikoku and Chugoku regions in Japan.
The Japanese firm established a “Council for utilising Namikata Terminal as a Hub for introducing Fuel Ammonia”, which will handle around one million tonnes of ammonia by 2030.
Mitsubishi represents the second Japanese major to explore offtake and participation in the Baytown plant, after JERA announced it would explore the offtake of around 500,000 tonnes of ammonia to meet the country’s demand.
Read more:JERA looks to buy into Exxon’s Texan mega-scale blue hydrogen project
Mitsubishi plans to partner with Idemitsu Kosan for joint equity and ammonia offtake from ExxonMobil’s Baytown facility.
“We are excited to be closely collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains that will bridge the US and Japan,” explained Masaru Saito, Group CEO, the Environmental Energy Group of Mitsubishi Corporation.
“We are also working with Idemitsu Kosan, which is developing an ammonia hub near ours and intends to participate in ExxonMobil’s hydrogen facility with us. Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors’ transition to clean energy.”
Earlier this month (September), Abu Dhabi’s ADNOC agreed to take a 35% equity stake in the Baytown project, “in line with the company’s commitment to sustainability and education in the locations where it operates.”
Read more:ADNOC secures 35% stake in ExxonMobil’s major blue hydrogen project
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