Abu Dhabi National Oil Company (ADNOC) has made a significant move by acquiring a 35% equity stake in Exxon Mobil Corp's ambitious low-carbon hydrogen project in Texas. The project, initially aiming to become the world's largest low-carbon hydrogen facility at its Baytown site in Texas, has faced setbacks including a one-year delay in start-up until 2029 and a final investment decision now set for 2025 instead of 2024. This delay comes amidst concerns over potential U.S. government restrictions on tax credits for the project, which could lead to its cancellation. The project, powered by natural gas with carbon capture and storage, has shifted its focus to producing 900,000 tons of low-carbon hydrogen and over 1 million tons of low-carbon ammonia annually. Additionally, a partnership with JERA has been established to explore sales of low-carbon ammonia. This development underscores the growing importance of hydrogen in the energy transition, as well as the challenges posed by evolving regulatory landscapes and the need for favorable tax incentives to drive such innovative projects.