ADNOC Invests in ExxonMobil’s US Hydrogen Plant Project
In a move to expand its portfolio of lower-carbon energy sources, the Abu Dhabi National Oil Company (ADNOC) has agreed to a 35% equity stake in ExxonMobil's proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.
The US$1bn billion investment, aimed at driving the global energy transition, represents a significant step forward in ADNOC's sustainable growth strategy.
His Excellency Dr. Sultan Ahmed Al Jaber, the UAE's Minister of Industry and Advanced Technology and ADNOC's Managing Director and Group CEO, says: "This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy.
“We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonise heavy-emitting sectors."
Abu Dhabi National Oil Company
ADNOC is a leading diversified energy and petrochemicals company owned by the Emirate of Abu Dhabi.
The company is a founding signatory of the Oil and Gas Decarbonisation Charter (OGDC) and aims to reach net zero in its operations by 2045.
Founded in 1971, ADNOC aims to reach net zero by 2045.
Ibrahim Al-Zu'bi, Chief Sustainability and ESG Officer at ADNOC, says: “Looking at sustainability from a triple bottom line approach is something very important for me and for my region, if not globally – ensuring balance for people, planet, and the economy must be at the heart of everything we do.”
ExxonMobil’s sustainability efforts
ExxonMobil, an American multinational oil and gas company headquartered in Texas, has also taken steps to reduce its environmental impact.
In 2023, the company had revenue of US$334bn and 61,500 employees.
It aims to achieve net zero greenhouse gas emissions for operated assets by 2050.
“I think every piece of this business is exciting,” says Darren Woods, ExxonMobil's Chairman and CEO.
“The way that we approach our business, the ethics that we bring, the standards that we hold ourselves to.
“We do things the right way for the right reasons, and I love that about our company.”
The Baytown hydrogen facility
The Baytown facility, expected to be the world's largest of its kind, will leverage advanced carbon capture and storage technologies to produce up to 1 billion cubic feet of low-carbon hydrogen per day.
This hydrogen, with approximately 98% of carbon dioxide removed, will also enable the production of more than 1 million tonnes of low-carbon ammonia annually.
Darren explains: "Bringing on the right partners is key to accelerating market development, and we're pleased to add ADNOC's proven experience and global market insights to our Baytown facility."
Hydrogen has emerged as a critical component of the global energy transition, offering a sustainable solution for industries and transportation that have historically been difficult to decarbonise.
As demand for lower-carbon fuels continues to rise, partnerships like this one between ADNOC and ExxonMobil will be essential in scaling up hydrogen production and distribution..
The project's construction is expected to bring substantial economic benefits to the Baytown area, the Houston region, and the state of Texas, creating local jobs and supporting community development initiatives.
The final investment decision for the Baytown facility is expected in 2025, with anticipated startup in 2029, contingent on supportive government policy and necessary regulatory permits.
"This agreement represents a significant investment in the United States' energy production and the global energy transition," says Dr. Sultan.
"It will help reduce greenhouse gas emissions across hard-to-decarbonise sectors, including industry, energy and transportation."
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