Abu Dhabi-based energy company Adnoc has agreed to acquire a 35% equity stake in Exxon Mobil's proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas. The project aims to be the world's largest of its kind, with a production capacity of up to 1 billion cubic feet daily of blue hydrogen and over 1 million tonnes of low-carbon ammonia annually. Adnoc plans to make a final investment decision in 2025, with operations expected to commence in 2029. Both companies see this as a significant step towards embracing lower-carbon energy sources and expanding internationally. Blue hydrogen, produced primarily from natural gas through steam reforming with 98% CO2 removal, is expected to see growing demand in the future. The Baytown plant will have access to inexpensive gas from the U.S. Gulf Coast, enhancing its cost competitiveness. The project is part of a broader trend where clean hydrogen demand is forecasted to rise, leading to a reduction in gray hydrogen consumption. McKinsey projects that by 2050, blue hydrogen production alone could necessitate a significant portion of global natural gas supply and substantial capacity for CO2 capture and storage. The partnership between Adnoc and Exxon Mobil highlights the momentum building around low-carbon hydrogen projects. Adnoc's strategic investment signifies its commitment to diversifying its energy portfolio, while Exxon Mobil's involvement underscores its focus on sustainable solutions. The Baytown facility is poised to play a crucial role in meeting the escalating demand for clean hydrogen, thereby contributing to the energy transition towards a more sustainable future.