Khaled bin Mohamed bin Zayed Witnesses Signing Ceremony for ADNOC and ExxonMobil Partnering in World’s Largest Low-Carbon Hydrogen Facility
ADNOC has agreed to acquire a 35% equity stake in ExxonMobil's (NYSE: XOM) proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas. The facility, expected to be the world's largest of its kind, aims to produce up to 1 billion cubic feet of low-carbon hydrogen daily and over 1 million tons of low-carbon ammonia annually, with 98% of CO2 removed. This strategic partnership supports both companies' net-zero ambitions and aims to accelerate decarbonization in hard-to-abate sectors. The project, contingent on regulatory approvals, anticipates a final investment decision in 2025 and startup in 2029. It promises substantial economic benefits for Baytown, the Houston area, and Texas, creating U.S. jobs and supporting community development initiatives.
ADNOC ha concordato di acquisire una partecipazione azionaria del 35% nell'impianto proposto da ExxonMobil (NYSE: XOM) per la produzione di idrogeno e ammoniaca a basse emissioni di carbonio a Baytown, Texas. L'impianto, che si prevede sarà il più grande al mondo nel suo genere, mira a produrre fino a 1 miliardo di piedi cubi di idrogeno a basse emissioni di carbonio al giorno e oltre 1 milione di tonnellate di ammoniaca a basse emissioni di carbonio all'anno, con il 98% di CO2 rimosso. Questa partnership strategica supporta le ambizioni di azzeramento netto di entrambe le aziende e mira ad accelerare la decarbonizzazione in settori difficili da ridurre. Il progetto, subordinato ad approvazioni normative, prevede una decisione finale di investimento nel 2025 e un inizio nel 2029. Promette notevoli benefici economici per Baytown, l'area di Houston e il Texas, creando posti di lavoro negli Stati Uniti e supportando iniziative di sviluppo comunitario.
ADNOC ha llegado a un acuerdo para adquirir una participación del 35% en la propuesta de ExxonMobil (NYSE: XOM) para una instalación de producción de hidrógeno y amoníaco de baja emisión de carbono en Baytown, Texas. Se espera que la instalación sea la más grande del mundo de su tipo, con la meta de producir hasta 1 mil millones de pies cúbicos de hidrógeno bajo en carbono diariamente y más de 1 millón de toneladas de amoníaco bajo en carbono anualmente, con un 98% de CO2 eliminado. Esta asociación estratégica apoya las ambiciones de neutralidad en emisiones de ambas compañías y busca acelerar la descarbonización en sectores difíciles de reducir. El proyecto, sujeto a aprobaciones regulatorias, anticipa una decisión final de inversión en 2025 y inicio en 2029. Promete beneficios económicos sustanciales para Baytown, el área de Houston y Texas, creando empleos en EE. UU. y apoyando iniciativas de desarrollo comunitario.
ADNOC는 ExxonMobil(NYSE: XOM)이 제안한 저탄소 수소 및 암모니아 생산 시설의 35% 지분을 인수하기로 합의했습니다. 이 시설은 세계 최대 규모가 될 것으로 예상되며, 매일 10억 입방피트의 저탄소 수소와 연간 100만 톤의 저탄소 암모니아를 생산할 계획이며, 98%의 CO2를 제거합니다. 이 전략적 파트너십은 두 회사의 탄소 중립 목표를 지원하고, 탈탄소화가 어려운 부문에서의 가속화를 목표로 합니다. 프로젝트는 규제 승인에 따라 진행되며, 2025년 최종 투자 결정을 예상하고 있으며, 2029년 가동 예정입니다. 이는 Baytown, 휴스턴 지역 및 텍사스에 상당한 경제적 이익을 약속하며, 미국 내 일자리를 창출하고 지역 사회 개발 이니셔티브를 지원할 것입니다.
ADNOC a accepté d'acquérir une participation de 35% dans l'installation de production d'hydrogène et d'ammoniaque à faibles émissions de carbone proposée par ExxonMobil (NYSE: XOM) à Baytown, Texas. L'installation, qui devrait être la plus grande de son genre au monde, vise à produire jusqu'à 1 milliard de pieds cubes d'hydrogène à faibles émissions de carbone par jour et plus de 1 million de tonnes d'ammoniaque à faibles émissions de carbone par an, avec 98% de CO2 éliminés. Ce partenariat stratégique soutient les ambitions de zéro émission nette des deux entreprises et vise à accélérer la décarbonisation dans des secteurs difficiles à traiter. Le projet, soumis à des approbations réglementaires, prévoit une décision d'investissement finale en 2025 et un démarrage en 2029. Il promet des bénéfices économiques importants pour Baytown, la région de Houston et le Texas, créant des emplois aux États-Unis et soutenant des initiatives de développement communautaire.
ADNOC hat sich bereit erklärt, eine 35%ige Beteiligung an der vorgeschlagenen Produktionsanlage für wasserstoff und ammoniak mit niedrigem Kohlenstoffausstoß von ExxonMobil (NYSE: XOM) in Baytown, Texas, zu erwerbben. Die Anlage, die voraussichtlich die größte ihrer Art weltweit sein wird, zielt darauf ab, bis zu 1 Milliarde Kubikfuß niedrigem Kohlenstoffwasserstoff täglich und über 1 Millionen Tonnen niedrigem Kohlenstoffammoniak jährlich zu produzieren, wobei 98% des CO2 entfernt wird. Diese strategische Partnerschaft unterstützt die Null-Emissions-Ziele beider Unternehmen und zielt darauf ab, die Dekarbonisierung in schwer reduzierbaren Sektoren zu beschleunigen. Das Projekt, das von Genehmigungen abhängt, erwartet eine Endinvestitionsentscheidung im Jahr 2025 und in Betriebnahme im Jahr 2029. Es verspricht erhebliche wirtschaftliche Vorteile für Baytown, die Region Houston und Texas, schafft Arbeitsplätze in den USA und unterstützt Initiativen zur Gemeindeentwicklung.
- ADNOC acquiring 35% stake in world's largest low-carbon hydrogen facility
- Facility capable of producing 1 billion cubic feet of low-carbon hydrogen daily
- 98% of CO2 removed in the production process
- Project supports both companies' net-zero ambitions
- Creation of U.S. jobs and economic benefits for Baytown, Houston area, and Texas
- Final investment decision not expected until 2025
- Project startup not anticipated until 2029
- Contingent on supportive government policy and regulatory permits
Insights
This partnership between ADNOC and ExxonMobil marks a significant milestone in the global energy transition. The proposed facility in Baytown, Texas, is set to become the world's largest low-carbon hydrogen and ammonia production plant, with a capacity of
For investors, this represents a strategic opportunity in the emerging low-carbon fuel market. The partnership leverages ExxonMobil's technological expertise and ADNOC's global market insights, potentially accelerating market development and returns. However, the 2029 startup date indicates a long-term investment horizon and the project's success hinges on supportive government policies and regulatory approvals.
This project exemplifies the growing trend of oil majors diversifying into low-carbon technologies. It's a significant step towards decarbonizing hard-to-abate sectors like industry and transportation. The facility's
The project's success could catalyze further investments in hydrogen infrastructure and accelerate the transition to a hydrogen economy. However, investors should be aware of potential regulatory risks, as the project is contingent on supportive government policies. The 2025 final investment decision provides a window for policy changes that could impact the project's viability.
This partnership signifies a strategic shift in global energy dynamics. ADNOC's
For ExxonMobil, this deal brings in significant foreign investment and expertise, potentially enhancing U.S. competitiveness in the low-carbon hydrogen market. Investors should consider the geopolitical implications of this partnership, as it could influence future energy trade relationships and policies. The project's success could pave the way for more international collaborations in clean energy, reshaping the global energy landscape.
ADNOC to acquire a
The strategic investment will support both companies’ net zero ambitions, accelerate decarbonization of hard-to-abate sectors, and meet rising demand for low-carbon hydrogen and ammonia
Facility expects to convert
The agreement represents a significant investment in the United States’ (
Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be the world’s largest of its kind upon startup, capable of producing up to 1 billion cubic feet (bcf) daily of low-carbon hydrogen, which is virtually carbon-free with approximately
His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: "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 decarbonize heavy-emitting sectors.”
The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. Creating
Darren Woods, ExxonMobil Chairman and CEO, said: “We appreciate His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s support for this groundbreaking partnership. This is a world-scale project in a new global energy value chain. 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
Following FID for the project, ADNOC intends to support ongoing community initiatives in the
About ADNOC
ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of
To find out more, visit: www.adnoc.ae
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About ExxonMobil
ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.
The corporation’s primary businesses - Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world. ExxonMobil also owns and operates the largest CO2 pipeline network in
With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050. To learn more, visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.
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Cautionary Statement
Statements of future events, investments, or partnerships in this release are forward-looking statements. Actual future results, including project plans, partner participation, timing, capacities, and costs could differ materially depending on a number of factors including the ability to execute operational objectives on a timely and successful basis; implementation of government frameworks and permitting for carbon capture and storage, hydrogen, ammonia and other lower-emission technologies; timely completion of construction projects; commercial and consumer interest in lower-emissions opportunities; changes in plans or objectives prior to final funding decisions or project startups; unforeseen technical or operational difficulties; and other factors discussed under the heading Factors Affecting Future Results in the Investors section of our website at www.exxonmobil.com. Any forward-looking statement speaks only as of the date of this press release and the companies named herein disclaim any obligation to update any forward-looking statement.
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ADNOC
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ExxonMobil
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Source: Exxon Mobil Corporation
FAQ
What is the equity stake ADNOC is acquiring in ExxonMobil's (XOM) Baytown facility?
How much low-carbon hydrogen and ammonia is the Baytown facility expected to produce?
When is the final investment decision (FID) for the ExxonMobil (XOM) Baytown project expected?
What percentage of CO2 is expected to be removed in the production process at the ExxonMobil (XOM) Baytown facility?
When is the anticipated startup date for the ExxonMobil (XOM) and ADNOC low-carbon hydrogen facility in Baytown?
