ADNOC has acquired a 35% stake in the ExxonMobil proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.
This strategic partnership aligns with both companies’ net-zero ambitions and will help decarbonize hard-to-abate industries while meeting increasing demand for low-carbon fuels.
The facility aims to convert natural gas into virtually carbon-free hydrogen, capturing nearly 98% of the resulting carbon dioxide. This project will not only advance U.S. competitiveness but also create jobs and support local communities.
The facility is expected to be the largest of its kind globally, producing up to 1 billion cubic feet of low-carbon hydrogen daily and over 1 million tons of low-carbon ammonia annually. A final investment decision is anticipated in 2025, with operations commencing in 2029.
Dr. Sultan Ahmed Al Jaber, ADNOC‘s Managing Director and Group CEO, emphasized the significance of this investment in expanding ADNOC’s portfolio of low-carbon energy sources and supporting its international growth strategy.
“We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonize heavy-emitting sectors,” Al Jaber said.
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The project will utilize advanced carbon capture and storage technologies to minimize emissions associated with hydrogen production.
It will also generate substantial economic benefits for Baytown, the Houston area, and Texas through job creation and community development initiatives.
ExxonMobil’s Chairman and CEO, Darren Woods, stated: “We appreciate His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s support for this groundbreaking 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.”
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Following a final investment decision, ADNOC plans to support ongoing community initiatives in the Baytown area, reflecting its commitment to sustainability and education in the regions where it operates.
This aligns with ADNOC’s broader strategy of fostering community development and ensuring that the benefits of its projects extend beyond environmental gains to include social and economic advancements.
