ExxonMobil and Marubeni Corporation have formalized a long-term agreement for ExxonMobil to supply approximately 250,000 tonnes per year of low-carbon ammonia to Marubeni. This agreement aims to bolster energy supplies, create employment opportunities, and strengthen industrial collaboration between the U.S. and Japan.
Marubeni intends to primarily supply the ammonia to the Kobe Power Plant, a subsidiary of Kobe Steel, Ltd. Furthermore, Marubeni has agreed to acquire an equity stake in ExxonMobil's low-carbon hydrogen and ammonia facility located in Baytown, Texas. The facility is projected to be the world's largest of its kind upon startup, with the capacity to produce up to 1 billion cubic feet of low-carbon hydrogen daily and over 1 million tons of low-carbon ammonia annually.
The hydrogen produced will be blue hydrogen, derived from natural gas with carbon capture and storage (CCS), capturing approximately 98% of CO2 emissions. A final investment decision is expected in 2025, contingent on supportive government policies and necessary permits. This initiative aligns with Japan's pursuit of hydrogen and clean ammonia to replace coal, particularly following the Fukushima disaster. Marubeni aims to establish a global low-carbon ammonia supply chain for Japan, assisting in the decarbonization of various sectors, including power, steel, chemicals, and transportation.