Abu Dhabi National Oil Co (Adnoc) has agreed to acquire a 35% stake in Exxon Mobil Corp's hydrogen project in Baytown, Texas, which is poised to become the world's largest. The project, scheduled to start operation around 2029, has faced delays due to disagreements with the Biden administration over tax credits. This initiative aligns with Exxon's strategy to incorporate hydrogen as a clean-burning fuel to decarbonize heavy industry and produce ammonia. Despite challenges in establishing large-scale hydrogen projects worldwide, Adnoc's partnership with Exxon, along with agreements with Jera Co and Air Liquide SA, reflects significant progress in the sector. Adnoc is strategically focusing on developing blue hydrogen supply capabilities in competitive regions like the Persian Gulf and the United States, aligning with the UAE's goal of achieving net-zero emissions by 2050. While the project's value remains undisclosed, it is considered a lower-cost blue hydrogen proposal. The main hurdle for the Texas facility is the eligibility for government tax credits, with Exxon's plan to utilize carbon capture technology to reduce emissions. Overall, the collaboration between Adnoc and Exxon represents a positive advancement in the global energy transition towards low-carbon solutions.