- ExxonMobil's Baytown facility will produce 1 million tons of low-carbon ammonia annually.
- A final investment decision is expected in 2025, contingent on policy and permits.
- Kobe Power Plant aims to co-fire low-carbon ammonia by Japan's fiscal year 2030.
Agreement Overview
Marubeni Corporation and ExxonMobil have signed a long-term agreement for the supply of approximately 250,000 tonnes of low-carbon ammonia annually. This ammonia will be sourced from ExxonMobil's Baytown, Texas facility, which is designed to produce hydrogen with 98% CO2 removal and low-carbon ammonia.
Facility Details
ExxonMobil's Baytown facility is projected to be the world's largest of its kind, capable of producing up to 1 billion cubic feet of low-carbon hydrogen daily and over 1 million tons of low-carbon ammonia per year. The final investment decision for this project is anticipated in 2025, dependent on supportive government policies and necessary regulatory approvals.
Decarbonization Goals
The agreement supports Japan's decarbonization efforts, with Marubeni supplying the ammonia primarily to Kobe Power Plant, a subsidiary of Kobe Steel. By Japan's fiscal year 2030, Kobe Power Plant aims to co-fire low-carbon ammonia with existing fuels to reduce CO2 emissions.
Future Plans
Marubeni intends to use this agreement as a stepping stone to establish a global low-carbon ammonia supply chain. The company aims to assist in decarbonizing not only Japan's power sector but also other hard-to-abate industries such as steel manufacturing, chemicals, and transportation.
