ExxonMobil and Air Liquide Join Forces for Low-Carbon Hydrogen in Texas
Key Ideas
  • ExxonMobil and Air Liquide partner to produce low-carbon hydrogen and ammonia in Baytown, Texas, aiming to decarbonize industrial operations along the U.S. Gulf Coast.
  • The agreement includes Air Liquide constructing four large modular air separation units (LMAs) to supply oxygen and nitrogen to the facility, utilizing low-carbon electricity to reduce emissions.
  • ExxonMobil's planned facility is set to produce 1 billion cubic feet of low-carbon hydrogen daily, over 1 million tons of ammonia annually, and capture more than 98% of associated CO2 emissions when operational in 2028.
  • The final investment decision for the project is expected in 2024, following a framework agreement with Japanese company JERA to explore joint development and potential ownership participation, also securing a market for low-carbon ammonia in Japan.
ExxonMobil, a prominent U.S. energy major, has formed an alliance with French company Air Liquide to embark on a groundbreaking low-carbon hydrogen project in Baytown, Texas. The collaboration aims to facilitate the production of low-carbon hydrogen and ammonia, with Air Liquide constructing four large modular air separation units to supply essential gases to the facility while prioritizing the use of low-carbon electricity. This strategic partnership is geared towards supporting industrial customers in decarbonizing their operations along the U.S. Gulf Coast. ExxonMobil's ambitious facility is anticipated to become a major player in the hydrogen market, intending to produce significant volumes of low-carbon hydrogen and ammonia while significantly reducing CO2 emissions. The project, set to kick off production in 2028, is contingent upon the final investment decision that is anticipated to be made in 2024 pending stakeholder support, regulatory approvals, and market conditions. Furthermore, in a move towards international collaboration, ExxonMobil recently inked a framework agreement with Japan's JERA to explore the project's development collaboratively. This agreement not only aims to enhance the project's scope but also secures a market for low-carbon ammonia in Japan, underlining the global impact and strategic importance of the initiative. The partnership between ExxonMobil and Air Liquide represents a notable step towards advancing sustainable energy practices and fostering innovation in the hydrogen industry.
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