Mitsubishi Corporation and Exxon Mobil Corporation have signed a Project Framework Agreement for Mitsubishi Corporation’s participation in ExxonMobil’s planned facility in Baytown, Texas, which is set to produce low-carbon hydrogen and ammonia. The facility will remove approximately 98 percent of carbon dioxide from the hydrogen production process, making the hydrogen virtually carbon-free. Under the terms of the agreement, the companies will discuss Mitsubishi Corporation’s offtake of low-carbon ammonia and its equity participation in the project. The low-carbon ammonia is expected to be used in Japan for power generation, process heating, and other industrial activities.
Contingent on favorable government policies and necessary regulatory permits, the facility is projected to be the world’s largest of its kind, with the capacity to produce up to 1 billion cubic feet of low-carbon hydrogen per day and over 1 million tons of low-carbon ammonia annually. A final investment decision is anticipated in 2025, with operations expected to begin in 2029.
ExxonMobil’s low-carbon hydrogen and ammonia will provide customers with a reliable energy source with low carbon intensity, while maintaining high operational standards.
“Demand continues to build for ExxonMobil’s low-carbon hydrogen and ammonia,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “We look forward to strengthening our leadership position, alongside Mitsubishi Corporation, to advance low-carbon hydrogen and ammonia globally, helping the world achieve a lower emission future.”
Mitsubishi Corporation plans to convert part of its liquified petroleum gas terminal into an ammonia terminal for transshipment, supplying low-carbon ammonia to industrial applications such as power, automotive, and chemical sectors, primarily in Japan’s Shikoku and Chugoku regions. The company has also established a “Council for Utilizing Namikata Terminal as a Hub for Introducing Fuel Ammonia,” targeting the handling of around 1 million tons of low-carbon ammonia per year by 2030.
In addition, Mitsubishi Corporation aims to partner with Idemitsu Kosan Co., Ltd. for joint equity and ammonia offtake from ExxonMobil’s Baytown facility.
“We are excited to be collaborating closely with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains that will connect the United States and Japan. Together with Idemitsu Kosan, we are leading this initiative to assist in the acceleration of the transition to clean energy in hard-to-abate sectors,” said Masaru Saito, Group CEO of the Environmental Energy Group at Mitsubishi Corporation.
For more information visit www.mitsubishicorp.com
