Japanese trading house Mitsubishi has announced a preliminary agreement to acquire a stake in and purchase low-carbon ammonia from ExxonMobil's hydrogen facility in Texas. This move is in line with Japan's decarbonisation goals, focusing on increasing the use of hydrogen and its derivative, ammonia, in various sectors like power generation, steel, and automobiles. The ExxonMobil facility is projected to generate massive quantities of hydrogen and low-carbon ammonia while significantly reducing CO2 emissions. The final decision is expected in the following year, with operations slated to begin in 2029. Mitsubishi intends to collaborate with Japanese oil refiner Idemitsu Kosan to establish a sustainable supply chain for low-carbon ammonia in Japan. Additionally, the companies plan to explore the industrial applications of this low-carbon ammonia, targeting sectors such as chemicals and steel. Concurrently, Mitsubishi is looking into repurposing its Namikata liquefied petroleum gas terminal into an ammonia terminal to support various industrial activities in western Japan. The company expressed enthusiasm about working closely with ExxonMobil to develop environmentally friendly hydrogen and ammonia supply chains that will connect the United States and Japan, showcasing a positive sentiment towards the initiative.