Abu Dhabi National Oil Co. has agreed to acquire a 35% stake in Exxon Mobil Corp.'s ambitious hydrogen project in Baytown, Texas, which is anticipated to become the world's largest once completed. This move solidifies the support and momentum behind the project, according to Exxon's low-carbon division president, Dan Ammann. The project, initially planned to commence operations in 2028, is now expected to start up around 2029 due to a dispute with the Biden administration regarding the facility's eligibility for tax credits under the Inflation Reduction Act. While hydrogen is a key element in Exxon's and other major oil companies' low-carbon strategies, the industry faces challenges in getting large-scale projects off the ground due to a lack of customers. The Texas plant aims to produce significant amounts of hydrogen and ammonia annually, leveraging existing infrastructure to support decarbonization efforts in heavy industries. Adnoc is the latest industrial partner to join the project, following agreements with JERA Co. and Air Liquide SA. The UAE's interest in hydrogen aligns with its commitment to reducing emissions while continuing to supply hydrocarbons to new sectors. The main obstacle for the Texas facility remains the government's tax credit system, with Exxon's blue hydrogen production potentially conflicting with green hydrogen-focused incentives. However, Exxon is confident that the accompanying carbon capture project can address the emissions concerns. This partnership underscores the importance of technology-agnostic policies that focus on reducing carbon intensity regardless of the approach used.