ExxonMobil Partners with Air Liquide to Advance Low-Carbon Hydrogen Production in the U.S. Gulf Coast
Key Ideas
- ExxonMobil collaborates with Air Liquide to utilize low-carbon hydrogen in industrial operations along the U.S. Gulf Coast, enhancing sustainability.
- Air Liquide will construct air separation units at the Baytown site to facilitate low-carbon hydrogen production, showcasing commitment to environmentally friendly practices.
- The partnership aims to capture more than 98% of associated CO2 emissions, contributing significantly to reducing industrial carbon emissions and transitioning to cleaner energy solutions.
- Production at the Baytown facility, set to begin in 2028, is a key milestone in ExxonMobil's strategy to expand the low-carbon hydrogen market, with a final investment decision expected in 2024.
ExxonMobil has formed a strategic partnership with Air Liquide to advance low-carbon hydrogen production along the U.S. Gulf Coast. This initiative focuses on decarbonizing industrial operations by utilizing Air Liquide's pipeline network to transport low-carbon hydrogen. As part of the agreement, Air Liquide will construct and operate air separation units at the Baytown site, enabling the production of 1 billion cubic feet of low-carbon hydrogen daily and over 1 million tons of ammonia annually. This project is designed to capture more than 98% of associated CO2 emissions, highlighting a commitment to sustainability. The integration of Air Liquide's expertise is crucial for ExxonMobil's strategy to expand the low-carbon hydrogen market and provide sustainable options for industrial customers. The Baytown facility is expected to commence production in 2028, pending a final investment decision in 2024, subject to stakeholder support and regulatory approvals. Additionally, ExxonMobil's collaboration with Japanese energy major JERA aims to further enhance the low-carbon hydrogen initiative. This partnership signifies a significant advancement in the pursuit of reducing industrial carbon emissions and transitioning to cleaner energy solutions. Investors looking into the energy sector may find interest in companies like Archrock Inc., SM Energy Company, and Sunoco LP, each offering strong investment opportunities.