ADNOC & ExxonMobil to Set Up Largest Hydrogen Facility

Abu Dhabi National Company (ADNOC) will acquire 35% equity stake in global oil major ExxonMobil Corporation’s proposed hydrogen and ammonia production facility in Baytown, Texas that will produce virtually carbon-free hydrogen.

An agreement to this effect was signed in the presence of H H Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council.

The agreement represents a significant investment in the US energy production and the global energy transition. It will help reduce greenhouse gas emissions across hard-to-decarbonise sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels, and accelerate a net-zero future.

Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be the world’s largest of its kind upon start-up, capable of producing up to 1 billion cubic feet (bcf) daily of low-carbon hydrogen, which is virtually carbon-free with approximately 98% of carbon dioxide (CO2) removed and more than 1 million tons of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated start-up in 2029.

Dr Sultan Ahmed Al Jaber, the UAE’s Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said that this strategic investment is a significant step for ADNOC as the company is growing its portfolio of lower-carbon energy sources and deliver on its international growth strategy.

He said that they were looking forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonize heavy-emitting sectors.

Economic Benefits to Baytown

The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. Creating US jobs and supporting community development initiatives, the project’s construction will also bring substantial economic benefits to Baytown, the Houston area and Texas.

ExxonMobil Chairman and CEO Darren Woods appreciated H H Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s support for this ground-breaking partnership.

“This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we’re pleased to add ADNOC’s proven experience and global market insights to our Baytown facility,” he added.

Following FID for the project, ADNOC intends to support ongoing community initiatives in the Baytown area, in line with the company’s commitment to sustainability and education in the locations where it operates.

This commitment reflects ADNOC’s broader strategy to foster community development and ensure that the benefits of its projects extend beyond environmental gains to include social and economic advancements.