ExxonMobil and Trammo Partnership to Supply Low-Carbon Ammonia from Baytown Hydrogen Facility
Key Ideas
- ExxonMobil and Trammo signed a Heads of Agreement to explore the off-take of 300,000 to 500,000 tonnes of low-carbon ammonia per year from the Baytown hydrogen facility.
- The Baytown facility, once operational, will be the largest of its kind, producing significant amounts of low-carbon hydrogen and ammonia annually.
- The partnership aligns with Trammo's goal of making large volumes of low-carbon ammonia available by 2030, attracting interest from companies like Mitsubishi, JERA, and ADNOC.
- Despite regulatory and governmental uncertainties, the Baytown project continues to progress, indicating a positive outlook for the supply of low-carbon ammonia in the market.
ExxonMobil has entered into a partnership with Trammo to potentially supply 300,000 to 500,000 tonnes of low-carbon ammonia annually from ExxonMobil's planned Baytown hydrogen facility in Texas to Trammo. The Heads of Agreement signifies the intent to explore the off-take of this ammonia, which Trammo plans to distribute for fertilizer production and various industrial applications in Europe and globally. The Baytown facility is expected to be the largest of its kind, with projections to produce a substantial amount of low-carbon hydrogen and ammonia on a daily and annual basis, respectively.
Christophe Savi, the President of Trammo, expressed that this partnership is a significant step towards achieving the company's objective of making substantial quantities of low-carbon ammonia accessible in the market by 2030. Despite the uncertainty posed by governmental decisions, such as President Trump's executive order regarding funding disbursement, the project remains on track for a final investment decision in 2025 and a potential startup in 2029, pending supportive policies and market conditions.
ExxonMobil's President of Low Carbon Solutions, Barry Engle, highlighted the growing interest from potential customers, including companies like Mitsubishi, JERA, and ADNOC, who have shown willingness to invest in and off-take ammonia from the Baytown facility. This demonstrates a positive trend in the development of low-carbon ammonia supply, despite some regulatory and political uncertainties. The continued progress of the Baytown project indicates a promising future for the availability of low-carbon ammonia in the market.
Topics
North America
Investment
Industrial Applications
Partnership
Low-carbon
Ammonia
Fertilizer Production
Customer Interest
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