ADNOC Acquires Stake in ExxonMobil’s Hydrogen, Ammonia Facility

ADNOC recently signed an agreement to acquire 35% equity stake in ExxonMobil Corp.’s planned low-carbon hydrogen and ammonia production facility in Baytown, TX, which requires supportive government policy and regulatory permits. The Baytown facility will utilize advanced CCS technologies to reduce carbon emissions produced during hydrogen production. A final investment decision (FID) is expected in 2025 with startup slated for 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 Ahmed Al Jaber, ADNOC Managing Director and Group CEO. “We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonize heavy-emitting sectors.”

Upon startup, the facility could produce more than 1 million tons of low-carbon ammonia per year and up to 1 billion cubic feet per day of low-carbon hydrogen, with approximately 98% of CO₂ removed. Project construction, through job creation and community development support, will economically benefit Baytown, the Houston area, and Texas.

“We appreciate Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s support for this partnership,” said Darren Woods, ExxonMobil Chairman and CEO. “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 experience and global market insights to our Baytown facility.”

ExxonMobil Low-Carbon News

In July 2024, CF Industries progressed with a CCS project at its complex in Yazoo City, MS, cutting the facility’s emitted atmospheric CO₂ by up to 500,000 metric tons per year. ExxonMobil also signed an agreement with the company to transport and store the complex’s CO₂ in geological formations.

Sequestration, which is expected to begin in 2028, will allow the Yazoo City Complex to manufacture ammonia-based low-carbon-intensity products, including nitrogen fertilizers such as urea ammonium nitrate solutions and ammonium nitrate. CF Industries and ExxonMobil are also progressing with a second CCS project at a facility in Donaldsonville, LA, which will sequester up to 2 million tons of CO₂ per year. Sequestration at the Donaldsonville site will commence in 2025.

In June, ExxonMobil partnered with Air Liquide to support its Baytown, TX facility in the production of low-carbon hydrogen and ammonia. The signed agreement enables ExxonMobil to transport the low-carbon hydrogen through Air Liquide’s existing pipeline network. In addition, Air Liquide will construct and operate four large modular air separation units to generate 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen per day for Baytown utilizing low-carbon electricity. The partnership with Air Liquide allows ExxonMobil to grow the low-carbon hydrogen market along the Gulf Coast, helping industrial customers to decarbonize operations.

And, in March, JERA and ExxonMobil agreed to a Project Framework Agreement (PFA) dedicated to exploring the development of a low-carbon hydrogen and ammonia production project in the United States. According to the terms of the PFA, JERA will explore ownership participation in the project via purchase of the Baytown hydrogen production plant. The deal also considers JERA’s procurement of approximately 500,000 tons of low-carbon ammonia per year, which will be produced at the Baytown Complex and transported for demand in Japan.