Mitsubishi Explores Offtake and Equity in ExxonMobil's US Hydrogen Project
Key Ideas
  • Mitsubishi Corporation is considering offtake and equity participation in ExxonMobil's blue hydrogen production project in Baytown, Texas, aiming to convert part of its LPG terminal into an ammonia terminal.
  • The project, expected to produce over one million tonnes of ammonia annually, plans to cater to power generation and industrial activities in Japan's Shikoku and Chugoku regions.
  • Partnerships with companies like Idemitsu Kosan and JERA, as well as ADNOC's recent 35% equity stake agreement, highlight a growing international interest and investment in clean energy projects.
  • Mitsubishi's collaboration with ExxonMobil and others signifies a joint effort to accelerate the transition of hard-to-abate sectors towards cleaner energy solutions, emphasizing sustainability and bridging ties between the US and Japan.
Mitsubishi Corporation is exploring the offtake of low-carbon ammonia and potential equity participation in ExxonMobil's blue hydrogen production project located in Baytown, Texas. The plant aims to produce more than one million tonnes of ammonia per year, with an anticipated final investment decision in the coming year for a 2029 startup. Mitsubishi's plan includes converting part of its LPG terminal into an ammonia terminal to supply fuel for power generation and industrial activities in Japan's Shikoku and Chugoku regions. The Japanese firm has established a council focused on utilizing the Namikata Terminal as a hub for introducing fuel ammonia, with the goal of handling around one million tonnes of ammonia by 2030. Mitsubishi is the second major Japanese company, after JERA, to explore offtake opportunities from the Baytown plant. Mitsubishi also plans to partner with Idemitsu Kosan for joint equity and ammonia offtake from the ExxonMobil facility. The Group CEO of Mitsubishi Corporation's Environmental Energy Group, Masaru Saito, expressed excitement about collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains bridging the US and Japan. The partnership with Idemitsu Kosan and ADNOC's recent 35% equity stake acquisition in the project reflect a growing international interest and investment in clean energy initiatives. Overall, the article outlines a positive sentiment towards the joint efforts of Mitsubishi Corporation, ExxonMobil, Idemitsu Kosan, and ADNOC in advancing clean energy solutions and the transition of industrial sectors to more sustainable practices.
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