Abu Dhabi National Oil Company (ADNOC) has entered into an agreement to acquire a 35% equity stake in ExxonMobil's proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, USA. The facility, once operational, is set to become the world's largest, with a production capacity of up to one billion cubic feet per day (bcf/d) of low-carbon or blue hydrogen. It aims to produce virtually carbon-free hydrogen, with 98% of carbon dioxide (CO₂) emissions captured, and over one million tons of low-carbon ammonia annually. The project is intended to utilize advanced carbon capture and storage (CCS) technologies to minimize emissions from hydrogen production. The final investment decision for the Baytown facility is scheduled for 2025, with operations expected to commence in 2029. This partnership underscores ADNOC's commitment to expanding its portfolio of lower-carbon energy sources and international growth strategy. ExxonMobil's chairman and CEO highlighted the importance of this collaboration in accelerating market development and welcomed ADNOC's experience and insights. The project also involves providing Japan with approximately 500,000 tonnes of low-carbon ammonia per year. While the project aims to contribute to industrial decarbonization, concerns have been raised about the environmental impact of blue hydrogen production, particularly related to methane leaks and the commercial viability of CCS technologies. Despite these challenges, the partnership between ADNOC and ExxonMobil signifies a positive step towards addressing the energy transition and reducing emissions in heavy-emitting sectors.