ExxonMobil and Trammo Partner to Supply Blue Ammonia from Baytown Hydrogen Plant
Key Ideas
  • ExxonMobil and Trammo signed a Heads of Agreement to discuss the supply of up to 500,000 tonnes of blue ammonia annually from the Baytown hydrogen plant in Texas.
  • The Baytown plant, one of the world's largest blue hydrogen plants, aims to generate over one million tonnes of ammonia per year with 98% of CO2 captured, targeting Europe and global markets for fertilizer and industrial use.
  • Japanese majors Mitsubishi and Jera are considering offtaking ammonia and investing in the plant by 2024, while Exxon is expected to make a final investment decision this year for production to commence in 2029.
  • The project's progress is contingent on government policies, regulations, and market conditions, with Exxon expressing optimism about the growing interest from customers like Trammo in the Baytown project.
ExxonMobil has entered into an agreement with French ammonia distribution firm Trammo to potentially supply up to 500,000 tonnes of blue ammonia annually from its upcoming Baytown hydrogen plant in Texas, US. The partnership aims to discuss the long-term offtake of 300,000-500,000 tonnes of low-carbon ammonia per year. The Baytown facility is anticipated to be one of the largest blue hydrogen plants globally, with the capacity to produce over one million tonnes of ammonia annually, capturing around 98% of CO2 emissions. Trammo plans to sell this blue ammonia in Europe and worldwide for various industrial applications, including fertilizer production. In a separate development, Japanese companies Mitsubishi and Jera are exploring the possibility of investing in the Baytown plant by 2024. Despite the ambitious plans, Exxon is awaiting a final investment decision this year, targeting production commencement in 2029. However, the company has raised concerns about the impact of tax credit rules for hydrogen producers on the project's viability. Exxon highlights that the project's timeline is contingent on government support, regulatory approvals, and market conditions. Barry Engle, President of ExxonMobil Low Carbon Solutions, expressed enthusiasm about the increasing interest from partners like Trammo in the Baytown initiative. The article also introduces a hydrogen training program, Class of H2, designed to educate individuals on various aspects of hydrogen production and applications.
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