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.
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.
