ExxonMobil has signed a Project Framework Agreement with Japanese energy corporation JERA to explore the purchase of low-carbon ammonia from Exxon’s Baytown facility outside of Houston, Texas, with JERA having ownership participation in the project.
Exxon is currently developing a low-carbon blue ammonia facility at Baytown that is expected to produce 900,000 mt/y of low-carbon hydrogen and more than one million mt/y of low-carbon ammonia, with production commencing in 2028. Exxon recently threatened to scrap the project given that the Inflation Reduction Act 45V proposed guidance would not give the project enough credits to compete against other projects.
JERA will explore procurement of 500,000 mt/y of the low-carbon ammonia produced at Baytown for demand in Japan. JERA, which is a joint venture between Tokyo Electric Power Company Holdings and Chubu Electric Power Co, was recently reported to have started a project demonstration on co-firing ammonia for power generation in Japan (GM March 15, p. 27).