ExxonMobil and ADNOC's Low-Carbon Hydrogen Partnership in Baytown, Texas
Key Ideas
- ExxonMobil and ADNOC are partnering in a 35% equity stake deal for a low-carbon hydrogen and ammonia production facility in Baytown, Texas.
- The facility aims to be the world's largest, producing 1 billion cubic feet per year of low carbon hydrogen and over 1 million tons of low-carbon ammonia annually.
- The final investment decision is expected in the first half of 2025, with operations slated to begin in 2029.
- Legal firm Latham & Watkins LLP supported ExxonMobil in this transaction and had previously assisted in a similar deal with Air Liquide for the facility.
Exxon Mobil Corporation has revealed a significant partnership with Abu Dhabi National Oil Company (ADNOC) regarding a major low-carbon hydrogen and ammonia production project in Baytown, Texas. ADNOC will be acquiring a 35% equity stake in ExxonMobil's proposed facility, which is set to become the largest of its kind globally upon commencement. The facility's ambitious production targets include generating 1 billion cubic feet per year of low carbon hydrogen and over 1 million tons of low-carbon ammonia annually. With a final investment decision expected in the first half of 2025, operations are projected to start in 2029, marking a substantial step towards sustainable energy production. Legal support for this transaction was provided by Latham & Watkins LLP, highlighting the complex and strategic nature of the deal. This development underscores a significant shift towards cleaner energy solutions and signifies a positive step in the realm of low-carbon hydrogen and ammonia production.