Abu Dhabi's Adnoc Partners with Exxon for World's Largest Hydrogen Project in Texas
Key Ideas
- Abu Dhabi National Oil Co. acquires a 35% stake in Exxon Mobil's hydrogen project in Baytown, Texas, set to be the world's largest upon completion.
- Exxon sees the plant starting up around 2029 with a one-year delay due to a disagreement with the Biden administration over tax credits.
- Hydrogen is a key focus for Exxon and other major oil companies to support low-carbon strategies and decarbonize heavy industries using existing infrastructure.
- The project aims to produce 1 billion cubic feet of hydrogen per day and 1 million tons of ammonia annually, with Adnoc being the third major partner to join the venture.
Abu Dhabi National Oil Co. has agreed to acquire a 35% stake in Exxon Mobil Corp.'s proposed hydrogen project in Baytown, Texas. The project, anticipated to become the largest of its kind globally, has gained momentum with this partnership. Initially planned for 2028, the plant's start-up is now expected around 2029 due to disputes over tax credits. Hydrogen plays a vital role in Exxon's low-carbon strategy, utilizing existing infrastructure for decarbonization efforts. Despite challenges in the low-carbon space, world-scale projects like the Baytown hydrogen initiative aim to drive progress. Adnoc's involvement marks a significant step, with plans to produce vast amounts of hydrogen and ammonia for local usage and export. This partnership highlights the growing interest in hydrogen as a clean energy source and underscores the importance of global collaborations in the energy sector.