ADNOC, Mitsubishi join Baytown mega-project
By on September 17, 2024
Equity stakes, offtake
Click to learn more. Graphic visualisation of ExxonMobil’s Baytown mega-project, producing low-emission ammonia for export. Source: Exxon.
Led by ExxonMobil, the mega-project is targeting production of 900,000 tons of CCS-based hydrogen per year, with some of this to be used as feedstock for ammonia production. JERA, SK Inc., and Air Liquide have already joined the project, with JERA and SK Inc. committing to offtake volumes for low-emission ammonia, which will be transported to Asia for power generation. FID is expected in 2025, with production to begin in 2029.
ADNOC will now come on board, acquiring a 35% equity stake in Baytown. Mitsubishi and Exxon will continue negotiations towards a formal offtake and equity agreement. Mitsubishi’s plans for low-emission ammonia imports to Japan center on the redevelopment of the Namikata terminal, an existing LPG hub in southern Japan. By 2030, the redevelopment partners aim for Namikata to be able to handle 1 million tons of ammonia imports each year.
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.
Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO in his organisation’s official press release, 4 Sept 2024
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 Baytown facility.
Darren Woods, ExxonMobil Chairman and CEO in ADNOC’s official press release, 4 Sept 2024
We are excited to be closely collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains that will bridge the United States and Japan. We are also working with Idemitsu Kosan, which is developing an ammonia hub near ours and intends to participate in ExxonMobil’s hydrogen facility with us. Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors’ transition to clean energy.
Masaru Saito Group CEO, Environmental Energy Group of Mitsubishi Corporation in his organisation’s official press release, 13 Sept 2024