Exxon and Mitsubishi launch low-carbon hydrogen project in Baytown by 2029

Exxon Mobil Corporation and Mitsubishi Corporation have entered into a Project Framework Agreement to collaborate on a low-carbon hydrogen and ammonia production facility in Baytown, Texas. This facility is anticipated to be the largest of its kind globally, with a production capacity of up to 1 billion cubic feet of low-carbon hydrogen daily and over 1 million tons of low-carbon ammonia annually. The project aims to capture 98% of CO2 emissions, significantly contributing to environmental sustainability efforts. The final investment decision for this ambitious project is expected in 2025, with operations projected to commence in 2029. Mitsubishi plans to adapt part of its LPG terminal into an ammonia terminal to facilitate the transshipment of low-carbon ammonia to various industries in Japan, particularly in the Shikoku and Chugoku regions. This strategic move aligns with Mitsubishi's goal of handling 1 million tons of low-carbon ammonia annually by 2030. Masaru Saito, Group CEO of Mitsubishi's Environmental Energy Group, expressed enthusiasm about the collaboration, emphasizing the importance of developing supply chains for low-carbon hydrogen and ammonia that connect the United States and Japan. The partnership also includes collaboration with Idemitsu Kosan Co., Ltd., which is working on an ammonia hub nearby and intends to participate in the hydrogen facility. This initiative is part of a broader effort to transition hard-to-abate sectors to cleaner energy sources, showcasing a commitment to reducing carbon emissions and promoting sustainable energy solutions in both countries.