Exxon Mobil and Marubeni Ink Low-Carbon Ammonia Supply Deal

Published 2 days agoXOM

Exxon Mobil and Marubeni Ink Low-Carbon Ammonia Supply Deal

Exxon Mobil has struck a landmark deal with Japanese trading company Marubeni to supply 250,000 metric tons of low-carbon ammonia annually. This agreement marks Exxon's first customer contract for its soon-to-be-constructed low-carbon hydrogen facility in Baytown, Texas, as reported by Reuters.

The Baytown complex is set to be a pioneering project, aiming to become the world's largest low-carbon hydrogen production facility. The site will convert natural gas into hydrogen while capturing and storing about 98% of the carbon dioxide emissions produced in the process. Ammonia will be used as a medium to transport hydrogen in liquid form, ensuring its effective delivery to global consumers.

The agreement between Exxon and Marubeni is contingent upon several factors, including Exxon's final investment decision regarding the Baytown project, expected this year, along with necessary regulatory approvals and favorable government policies. Additionally, Marubeni will also gain an equity stake in the project, further cementing this strategic partnership. This initiative underscores Exxon's commitment to advancing its low-carbon energy ventures.

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