Adnoc plans to purchase a 35 percent equity share in ExxonMobil's upcoming low-carbon hydrogen and ammonia production plant in Baytown, Texas. The two energy giants formalized this strategic partnership on Wednesday, in the presence of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council. Sheikh Khaled highlighted the significance of this partnership in bolstering the UAE's initiatives to secure and sustain the global energy sector, and to enhance the UAE's status as a leading producer and supplier of low-carbon hydrogen.
He reiterated that the development of this facility is in line with the leadership's vision to invest in and promote clean energy projects both domestically and internationally. This strategic agreement signifies a substantial investment in US energy production and the global energy transition, targeting a reduction in greenhouse gas emissions across sectors that are difficult to decarbonize, such as industry, energy, and transportation. It aims to meet the growing demand for lower-carbon fuels and expedite a net-zero future.
Subject to supportive government policies and requisite regulatory approvals, the facility is anticipated to be the world's largest of its kind upon commencement, capable of producing up to 1 billion cubic feet daily of near carbon-free hydrogen, with approximately 98 percent of carbon dioxide removed, and over 1 million tonnes of low-carbon ammonia annually. A final investment decision (FID) is projected for 2025, with an expected startup in 2029.
Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, stated: "This strategic investment marks a significant milestone for Adnoc as we expand our portfolio of lower-carbon energy sources and fulfill our international growth strategy. We are eager to collaborate with ExxonMobil on this technologically advanced project to meet increasing demand and aid in decarbonizing high-emitting sectors."
The facility will utilize advanced carbon capture and storage technologies to minimize emissions related to hydrogen production. Darren Woods, ExxonMobil Chairman and CEO, commented: "This is a world-scale project in a new global energy value chain. Securing the right partners is crucial to accelerating market development, and we are delighted to incorporate Adnoc's proven expertise and global market insights into our Baytown facility."
Post FID for the project, Adnoc plans to support ongoing community initiatives in the Baytown area, aligning with the company's dedication to sustainability and education in its operational locations. This commitment mirrors Adnoc's broader strategy to promote community development and ensure that the benefits of its projects extend beyond environmental gains to encompass social and economic advancements.
