ADNOC Joins Forces With ExxonMobil To Build Leading Low-Carbon Hydrogen Plant
H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, has overseen a strategic partnership between ADNOC and ExxonMobil Corporation. ADNOC will acquire a 35 percent equity stake in ExxonMobil’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, US.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, stated, "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."
The agreement marks a major investment in US energy production aimed at reducing greenhouse gas emissions across various sectors such as industry, energy, and transportation. The project aims to meet the increasing demand for lower-carbon fuels and accelerate the transition to a net-zero future.
Darren Woods, ExxonMobil Chairman and CEO, remarked, "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."
The facility will utilise advanced carbon capture and storage technologies to minimise emissions associated with hydrogen production. Upon completion, it is expected to be the largest of its kind globally, capable of producing up to 1 billion cubic feet daily of low-carbon hydrogen with approximately 98 percent of carbon dioxide removed.
H.H. Sheikh Khaled bin Mohamed bin Zayed highlighted the importance of collaboration in supporting the UAE’s efforts to ensure global energy security and sustainability. He emphasised that this development aligns with the leadership’s vision to invest in clean energy projects both domestically and internationally.
Community Initiatives
Following the final investment decision (FID) expected in 2025, ADNOC plans to support ongoing community initiatives in Baytown. This commitment reflects ADNOC’s broader strategy to foster community development alongside environmental gains.
The facility will also produce more than 1 million tonnes of low-carbon ammonia annually. The startup is anticipated by 2029, contingent on supportive government policies and necessary regulatory permits.
This strategic partnership underscores the UAE's commitment to advancing clean energy solutions globally while strengthening its position as a leading producer of low-carbon hydrogen.
With inputs from WAM
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