Marubeni Corp. will offtake approximately 250,000 tons of low-carbon ammonia per year to supply Kobe power plant with co-firing capabilities.
Under a long-term offtake agreement, ExxonMobil’s facility in Baytown, TX, will supply Marubeni Corp. with approximately 250,000 tons of low-carbon ammonia per year. Additionally, Marubeni will acquire an equity stake in the low-carbon hydrogen and ammonia production facility. Once purchased, the ammonia will be shipped to Japan and primarily supplied to the Kobe power plant, a subsidiary of Kobe Steel.
“This is another positive step forward for our project,” said Barry Engle, President of ExxonMobil Low Carbon Solutions. “By using American-produced natural gas, we can boost global energy supply, support Japan’s decarbonization goals, and create jobs at home. Our relationship with Marubeni sets the stage for delivering low-carbon ammonia from the United States to Japan for years to come."
ExxonMobil’s Baytown facility, expected to be the largest-of-its-kind once commissioned, will produce low-carbon ammonia and hydrogen with approximately 98% of CO2 removed. Per year, the facility is slated to produce over 1 million tons of low-carbon ammonia and, on a per-day basis, up to 1 bcf of low-carbon hydrogen. The company anticipates a final investment decision in 2025, pending additional governmental policy support and the required regulatory permits.
Hydrogen burners at Baytown facility; image credit: ExxonMobil
The Kobe power plant intends to co-fire this low-carbon ammonia supply with current fuels to minimize CO2 emissions by fiscal year 2030. Marubeni will leverage this supply chain to decarbonize various Japanese sectors, such as:
“Marubeni will take this first step together with ExxonMobil in the aim of establishing a global low-carbon ammonia supply chain for Japan through the supply of low-carbon ammonia to the Kobe Power Plant,” said Yoshiaki Yokota, Senior Managing Executive Officer, Marubeni Corp. “Additionally, we aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia. We hope to actively cooperate with ExxonMobil, with a view of utilizing this experience and relationship to strategically decarbonize our power projects in Japan and Southeast Asia in the near future.”
ExxonMobil in the News
Recently, ExxonMobil agreed to transfer and permanently store up to 2 MTPA of CO2 from Calpine’s Baytown Energy Center near Houston, TX, per a CO2 transportation and storage agreement. From the cogeneration facility, the carbon will be transported through ExxonMobil’s CO2 pipeline system to support oil recovery applications and deliver a continuous supply of low-carbon electricity and steam along the U.S. Gulf Coast.
Engineering, permitting, and additional development work are underway at Calpine’s Baytown CCS project, which will generate approximately 500 MW of low-carbon electricity and steam to power over 500,000 Texas households and industrial users, respectively. The project, expected to create construction and permanent, skilled positions, is designed to capture the Baytown Energy Center’s CO2 emissions.
In mid-October 2024, ExxonMobil signed the largest offshore CO2 storage lease in the United States with the Texas General Land Office for a 271,000-acre site in Texas’ Gulf of Mexico waters. The site complements ExxonMobil’s under-development onshore CO2 storage portfolio and contributes further CCS activity to the U.S. Gulf Coast. The terms of the agreement will directly benefit the Texas Permanent School Fund, enhancing education for Texas children while reducing emissions and promoting community development in nearby areas.