ExxonMobil and JERA to Form a Joint Venture to Develop a Low Carbon Hydrogen and Ammonia Production Project

ExxonMobil and JERA will form a joint venture to explore the development of the new low-carbon hydrogen and ammonia production project situated in the Baytown Complex east of Houston, Texas, United States. JERA has signed a Project Framework Agreement with ExxonMobil to jointly explore the development of a low-carbon hydrogen and ammonia production project in the United States.

ExxonMobil is currently developing what is expected to be the world’s largest low-carbon hydrogen production plant at its Baytown Complex east of Houston, Texas, United States. The plant is slated to have an annual production capacity of approximately 900,000 metric tons of low-carbon hydrogen and an annual production capacity of more than one million metric tons of low-carbon ammonia. The project aims to begin production in 2028.

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“Cooperation among leading companies is essential to establishing supply chains for ammonia, hydrogen, and other products that are key to zero-emission thermal power,” said Steven Winn, JERA’s Senior Managing Executive Officer and Chief Global Strategist. “We believe that working together with ExxonMobil, who is actively promoting investment in carbon capture and storage (CCS) and hydrogen, will contribute to the transition to a global decarbonized society.”

Difference Between Low Carbon Hydrogen and Green Hydrogen
 

Objectives of the Joint Venture

Under the terms of the agreement, JERA and ExxonMobil will explore:

• JERA’s ownership and participation in the Project
• JERA’s procurement of approximately 500,000 tonnes annually of low-carbon ammonia produced by the Project for demand in Japan

Project Overview

ExxonMobil is planning its first world-scale plant for the production of low-carbon hydrogen at our refining and petrochemical facility in Baytown, Texas. The company expects to produce up to 1 billion cubic feet per day of hydrogen made from natural gas and expects over 98% of the associated CO2 to be captured and safely stored underground. 

This project would be a game-changer in two ways.

First, using hydrogen to fuel the olefins plant at Baytown could reduce site-wide CO2 emissions by up to 30% compared to current operations. The project would support ExxonMobil’s ambition to achieve net-zero greenhouse gas emissions.

Second, the planned carbon capture storage project will be one of the largest CCS projects in the world,  capable of storing up to 10 million metric tons of CO2 per year.

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