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Why UAE's ADNOC is investing in Exxon's Texas hydrogen plant

Abu Dhabi's state-run oil company is taking a stake in ExxonMobil's major new low-carbon hydrogen and ammonia plant, its second foray into the Texas energy industry.

A general view shows the ADNOC Facility in Fujairah on November 28, 2023. Using novel technology developed by Omani start-up 44.01, the solar-powered plant will suck carbon dioxide from the air, dissolve it in seawater and inject it deep underground, where it will mineralise over a period of months. (Photo by Karim SAHIB / AFP) (Photo by KARIM SAHIB/AFP via Getty Images)
A general view shows an ADNOC facility in Fujairah on Nov. 28, 2023. — KARIM SAHIB/AFP via Getty Images

DUBAI — The state-run Abu Dhabi National Oil Company said on Wednesday it was taking a 35% stake in ExxonMobil's low-carbon hydrogen and ammonia plant in Texas as it looks to expand its international portfolio and diversify into greener assets.

ADNOC said the plant, which will be located in Baytown, is expected to produce up to 1 billion cubic feet per day of hydrogen and would be "one of the world's largest" when it is completed. 

Around 1 million tons of low-carbon ammonia will be produced annually, and 98% of the carbon dioxide resulting from the process will be offset. Ammonia acts as a carrier for the transportation and storage of hydrogen. 

Final investment decisions on the project, which is pending government and regulatory approvals, are expected to be reached  in 2025. Startup is scheduled for 2029, ADNOC said.

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