ADNOC has agreed to acquire a 35% equity stake in ExxonMobil's blue hydrogen and ammonia project located in Baytown, Texas. The project aims to produce up to 900,000 tonnes of hydrogen and over 1 million tonnes of low-carbon ammonia annually. Both companies are working towards finalizing the investment decision in 2025, with operations scheduled to commence in 2029. ADNOC plans to support community initiatives in the Baytown area, aligning with its sustainability commitments. The project will rely on carbon capture and storage (CCS) technologies to minimize emissions. However, concerns have been raised regarding the impact of current US clean hydrogen production tax credit rules on blue hydrogen projects. Despite these challenges, the partnership between ADNOC and ExxonMobil is seen as a strategic move to enhance the portfolio of low-carbon energy sources and contribute to decarbonization efforts in heavy-emitting sectors. The CEOs of both companies have expressed enthusiasm for the collaboration, highlighting the importance of global partnerships in advancing the energy market.