ExxonMobil, Mitsubishi Join Forces on Major Low-Carbon Project
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Exxon Mobil Corporation XOM and Japan-based Mitsubishi Corporation MSBHF signed a project framework agreement to collaborate on a groundbreaking low-carbon hydrogen and ammonia facility in Texas. The partnership, centered on ExxonMobil's proposed Baytown facility, aims to push forward the production of cleaner energy solutions and meet the growing global demand for sustainable fuel.
Per the agreement, ExxonMobil and Mitsubishi will explore opportunities for the latter's acquisition of low-carbon ammonia and potential investment in the project. Once operational, the Baytown plant is slated to be the largest of its kind, producing up to one billion cubic feet per day (bcf/d) of low-carbon hydrogen.
The facility is projected to capture around 98% of CO2 emissions, marking a significant step toward near-zero carbon operations. By 2030, the plant will produce more than one million tons of low-carbon ammonia annually. Mitsubishi plans to use ammonia in Japan for various industrial applications, including power generation and process heating, to decarbonize these energy-intensive sectors.
Mitsubishi plans to repurpose part of its liquefied petroleum gas terminal into an ammonia trans-shipment terminal. The move is designed to facilitate ammonia export from Texas to Japan, where Mitsubishi aims to supply low-carbon ammonia to industrial consumers in the Shikoku and Chugoku regions.
ExxonMobil and Mitsubishi’s collaboration aligns with both companies’ net-zero aspirations and reflects their commitment to decarbonizing hard-to-abate sectors such as power generation and heavy industry. The Baytown facility is part of a larger trend of developing low-carbon hydrogen and ammonia supply chains, and it is expected to play a critical role in connecting the United States and Japan in the clean energy space.
While the companies did not disclose specific details regarding the size of Mitsubishi’s potential stake or the amount of ammonia to be taken, a final investment decision is expected by 2025. The facility is projected to be operational by 2029.
This joint venture will help drive the global transition toward more sustainable energy solutions and provide a blueprint for future international partnerships in the decarbonization effort. Through this collaboration, ExxonMobil and Mitsubishi are set to make significant contributions to the future of clean energy, reinforcing their roles as leaders in the global effort to reduce carbon emissions and combat climate change.
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