BAKU, Azerbaijan, September 4. ADNOC has announced its acquisition of a 35-percent equity stake in a groundbreaking project in Baytown, Texas, that will produce hydrogen with virtually zero carbon emissions, Trend reports.
The agreement, witnessed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, marks a significant investment in the U.S. energy sector and a crucial step in the global energy transition.
The Baytown project, contingent on supportive government policies and regulatory approvals, is set to become the world's largest facility of its kind once operational. It is expected to produce up to 1 billion cubic feet per day of low-carbon hydrogen, with approximately 98% of carbon dioxide emissions captured, and more than 1 million tons of low-carbon ammonia annually. The final investment decision (FID) is anticipated in 2025, with the startup slated for 2029.
Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, emphasized the importance of this investment, stating, "This strategic investment is a significant step for ADNOC as we expand our portfolio of lower-carbon energy sources and pursue our international growth strategy. Partnering with ExxonMobil on this technologically advanced project allows us to meet rising global demand while helping to decarbonize heavy-emitting sectors."
The facility will utilize cutting-edge carbon capture and storage technologies to minimize emissions from hydrogen production. In addition to its environmental benefits, the project is expected to create jobs and support community development in Baytown, the Houston area, and Texas, bringing substantial economic gains to the region.
Darren Woods, ExxonMobil Chairman and CEO, expressed his appreciation for the partnership, saying, "We value His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s support for this groundbreaking project. This is a world-scale initiative within a new global energy value chain. Partnering with ADNOC, with its proven expertise and global market insights, is key to accelerating the development of this market."
ADNOC has also committed to supporting ongoing community initiatives in the Baytown area, aligning with its broader strategy to promote sustainability, education, and community development in the regions where it operates. This reflects ADNOC’s dedication to ensuring that the benefits of its projects extend beyond environmental advancements to include social and economic progress.