Exxon announced a contract award for front-end engineering and design (FEED) with Technip Energies for the world’s largest low-carbon hydrogen facility. The final investment decision for the site is expected by 2024 and depends on stakeholder support, regulatory permitting, and market conditions.
The low-carbon hydrogen, ammonia, and carbon capture site, located in Baytown, Texas is expected to produce one billion cubic feet of low-CO2 hydrogen daily, making it the largest such project globally. Its planned startup is set for 2027-2028.
Over 98% of the associated carbon produced by the facility – or around 7 million metric tons per year – is expected to be captured and stored permanently. The CO2 capture and storage network that is developed for the project will be made available for use by third-party local carbon emitters.
“This project allows us to offer significant volumes of low-carbon hydrogen and ammonia to third-party customers in support of their decarbonization efforts,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. The project is expected to allow up to a 30% reduction in Scope 1 and 2 emissions from the Baytown integrated complex, by switching from natural gas to low-CO2 hydrogen, he also said.
ExxonMobil will pair the low-CO2 hydrogen project with the largest olefins site in the U.S. to offer more sustainable, lower-emissions products.
Technip Energies will be responsible for the next stage of front-end engineering and design of the low-CO2 hydrogen project.
The offtake agreements for the project are currency under discussion with third-party emitters.