Mitsubishi Corp. has signed a Project Framework Agreement with ExxonMobil to participate in Exxon’s blue hydrogen and ammonia project in Baytown, Texas. Under the agreement the companies will advance discussions on Mitsubishi’s offtake of low-carbon ammonia and equity participation in the project.
The Baytown facility is expected to produce up to 1 billion cubic feet/d of low-carbon hydrogen using carbon capture technology and will produce more than 1 million mt/y of low-carbon ammonia. Mitsubishi expects to use the ammonia in power generation, process heating, and other industrial activities in Japan. Mitsubishi has stated they will also work with Idemitsu Kosan Co. Ltd., who is developing an ammonia hub.
“Demand continues to build for ExxonMobil™ Low Carbon Hydrogen and ammonia,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “We look forward to furthering our leadership position, alongside Mitsubishi Corp., to advance low-carbon hydrogen and ammonia globally, helping the world achieve a lower emission future.”
Mitsubishi is the fourth major industrial partner to join Exxon’s project. Abu Dhabi National Oil Co. (ADNOC) also recently made an investment, acquiring a 35% equity stake in the project (GM Sept. 6, p. 1). Prior to that, JERA Co. and a joint venture between Tokyo Electric Power Company Holdings and Chubu Electric Power Co. signed a non-binding agreement to buy half of the ammonia (GM March 15, p. 27). In June Air Liquide SA said the project could use its pipelines.
Mitsubishi has made several recent moves in the low-carbon space. Mitsubishi Power inked a Memorandum of Understanding (MoU) with Hygenco GreenEnergies to explore green hydrogen and ammonia in gas turbine combined cycle plants, and parent company Mitsubishi Heavy Industries signed an MoU with Taiwan Fertilizer Company to explore an ammonia fuel value chain in Taiwan (GM Aug. 9, p. 25).