Mitsubishi and ExxonMobil sign Project Framework Agreement to advance low-carbon hydrogen project
London, September 13, 2024, (Oilandgaspress) ––Mitsubishi Corporation and Exxon Mobil Corporation (NYSE: XOM) have signed a Project Framework Agreement for Mitsubishi Corporation’s participation in ExxonMobil’s facility in Baytown, Texas which is expected to produce virtually carbon-free hydrogen with approximately 98% of carbon dioxide (CO2) removed and low-carbon ammonia. Under the terms of the agreement, the companies will advance discussions regarding Mitsubishi Corporation’s offtake of low-carbon ammonia and equity participation in the project. The ammonia is expected to be used in Japan for power generation, process heating, and other industrial activities.
Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be the world’s largest of its kind upon startup, capable of producing up to 1 billion cubic feet (bcf) daily of low-carbon hydrogen, which is virtually carbon-free with approximately 98% of CO2 removed and more than 1 million tons of low-carbon ammonia per year. A final investment decision is expected in 2025 with anticipated startup in 2029.
ExxonMobilTM Low Carbon Hydrogen and ammonia will provide customers with a reliable source of low-carbon intensity energy delivered with high operating standards.
“Demand continues to build for ExxonMobilTM Low Carbon Hydrogen and ammonia,” said Dan Ammann President of ExxonMobil Low Carbon Solutions. “We look forward to furthering our leadership position, alongside Mitsubishi Corporation, to advance low-carbon hydrogen and ammonia globally, helping the world achieve a lower emission future.”
Mitsubishi Corporation aims to convert part of its liquified petroleum gas (LPG) terminal into an ammonia terminal for transshipment, which will then supply the low-carbon ammonia to various industrial applications, such as power, automobile and chemical, mainly in the Shikoku and Chugoku regions in Japan. Mitsubishi Corporation has established a “Council for utilizing Namikata Terminal as a Hub for introducing Fuel Ammonia” which is targeting to handle around 1 million tons per year of low-carbon ammonia by 2030.
In addition, Mitsubishi Corporation intends to partner with Idemitsu Kosan Co.,Ltd. for joint equity and ammonia offtake from ExxonMobil’s Baytown facility.
“We are excited to be closely collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains that will bridge the United States and Japan. We are also working with Idemitsu Kosan Co.,Ltd., which is developing an ammonia hub near ours and intends to participate in ExxonMobil’s hydrogen facility with us. Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors’ transition to clean energy,” said Masaru Saito Group CEO, Environmental Energy Group of Mitsubishi Corporation.
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