ADNOC Joins Exxon in Texas Hydrogen Project, Defying Tax Credit Dispute
Key Ideas
  • ADNOC acquires a 35% stake in Exxon's hydrogen project in Baytown, Texas, set to be the world's largest, demonstrating strong industrial backing.
  • Exxon's plant, delayed to start in 2029, aims to produce 1 Bcf of hydrogen and 1 million tons of ammonia per year for decarbonization.
  • The UAE's ADNOC, focusing on blue hydrogen supply, joins as the third major partner, emphasizing cost competitiveness and low carbon intensity.
  • Despite the dispute over tax credits for blue hydrogen production, executives advocate for technology-agnostic policies to support emissions reduction projects.
Abu Dhabi National Oil Co. (ADNOC) has agreed to acquire a 35% stake in Exxon Mobil Corp.'s hydrogen project in Baytown, Texas, positioning it to be the world's largest once operational. The project has garnered significant momentum with ADNOC's involvement, aligning with Exxon's low-carbon strategy to utilize hydrogen for industrial decarbonization. Delayed to start in 2029, the plant aims to produce substantial amounts of hydrogen and ammonia annually. ADNOC's entry as the third major partner after JERA Co. and Air Liquide SA highlights the project's strong industry support and focus on cost-effective blue hydrogen production. Despite challenges regarding tax credits for blue hydrogen, executives advocate for policies that prioritize emissions reduction regardless of technology. The partnership with ADNOC signifies a strategic move towards hydrogen production and signifies the UAE's commitment to achieving net-zero emissions by 2050, alongside efforts in carbon capture and low-carbon solutions.
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