ExxonMobil Corp. signed a project framework agreement with Mitsubishi Corp. under which the companies will advance discussions about Mitsubishi’s participation in ExxonMobil’s proposed hydrogen and ammonia project in Baytown, Tex.
Contingent on supportive government policy and necessary regulatory permits, the plant is expected to be the world’s largest of its kind upon startup, ExxonMobil said, capable of producing up to 1 bcfd of low-carbon hydrogen from US-produced natural gas, and more than 1 million tonnes/year (tpy) of low-carbon ammonia. A final investment decision is expected in 2025 with anticipated startup in 2029.
Earlier this month, ExxonMobil farmed our a 35% stake in the proposed project to ADNOC (OGJ Online, Sept. 4, 2024).
Mitsubishi aims to convert part of its Namikata liquified petroleum gas (LPG) terminal in Imabari City, Ehime Prefecture, Japan, into an ammonia terminal for transshipment, which will then supply the low-carbon ammonia to various industrial applications, such as power, automobile and chemical, mainly in the Shikoku and Chugoku regions in Japan.
In addition, Mitsubishi intends to partner with Idemitsu Kosan Co. Ltd. for joint equity and ammonia offtake from ExxonMobil’s Baytown plant.