His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council, witnessed the signing of an agreement on the 4th of September 2024 under which ADNOC will acquire a 35 percent equity stake in Exxon Mobil Corporation’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas. The signing ceremony in Abu Dhabi featured key executives from ExxonMobil and ADNOC, including Darren Woods, chairman and CEO of ExxonMobil, and His Excellency Dr. Sultan Ahmed Al Jaber, minister of industry and advanced technology and ADNOC managing director and Group CEO.
This agreement represents a significant investment in the United States’ energy production and the global energy transition. The project aims to reduce greenhouse gas emissions across hard-to-decarbonize sectors, including industry, energy, and transportation, while meeting the rising demand for lower-carbon fuels and accelerating progress towards a net-zero future.
ExxonMobil and ADNOC executives at the signing ceremony in Abu Dhabi (left to right): Geoffrey Richardson, Mohammed Alamin, Darren Woods, H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, H.E. Dr. Sultan Ahmed Al Jaber, Michele Fiorentino, Dr. Abdulla Humaid Al Jarwan
Contingent on supportive government policies and necessary regulatory approvals, the facility is expected to become the world’s largest of its kind upon startup. It will be capable of producing up to 1 billion cubic feet per day of low-carbon hydrogen, with approximately 98 percent of carbon dioxide emissions removed, as well as more than 1 million tonnes of low-carbon ammonia per year. A final investment decision is anticipated in 2025, with the facility expected to commence operations in 2029.
His Excellency Dr. Sultan Ahmed Al Jaber highlighted the strategic importance of the investment, stating, “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 Baytown facility will leverage advanced carbon capture and storage technologies to minimise emissions associated with hydrogen production. The project is expected to create US jobs and support community development initiatives, bringing substantial economic benefits to Baytown, the Houston area, and Texas.
Darren Woods, chairman and CEO of ExxonMobil, expressed appreciation for the partnership, saying, “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 Baytown facility.”
Following the FID, ADNOC intends to support ongoing community initiatives in the Baytown area, reflecting its commitment to sustainability and education in the regions where it operates. This commitment aligns with ADNOC’s broader strategy to foster community development and ensure that the benefits of its projects extend beyond environmental gains to include social and economic advancements.
This partnership marks a major step forward in ADNOC’s efforts to expand its low-carbon energy portfolio and play a pivotal role in the global energy transition, while supporting ExxonMobil in advancing innovative solutions to meet the world’s energy needs sustainably.
For more information visit www.exxonmobil.com
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