Exxon hydrogen CCS plant advances with power company deal

By Carlos Anchondo | 03/26/2024 06:59 AM EDT

Japan’s largest power generation company said it planned to buy ammonia from the oil major’s planned Texas project.

An Exxon sign in New York.

An Exxon sign in New York. Spencer Platt/Getty Images

Japan’s largest power generation company announced Monday it has reached an agreement with Exxon Mobil to “jointly explore” the development of the oil major’s planned project in Texas to produce “blue” hydrogen with carbon capture.

The project envisions producing an estimated 900,000 metric tons of low-carbon hydrogen and more than 1 million metric tons of ammonia each year at a facility in Baytown, which is nearly 30 miles east of downtown Houston. Exxon unveiled plans for the hydrogen facility and carbon capture project two years ago, but the company hasn’t yet made a final investment decision on the proposal.

That decision is “still subject to supportive government policy, necessary regulatory permits, stakeholder support and market conditions,” Exxon spokesperson Margot Ledet said in an email. Ledet declined to share a cost estimate for the project.


Dan Ammann, president of Exxon Mobil’s Low Carbon Solutions, said in the news release that the agreement is an “important catalyst” in growing a hydrogen economy. Blue hydrogen envisions producing the fuel with natural gas and capturing the resulting emissions.