Abu Dhabi Nationwide Oil Co. (ADNOC) is buying a 35 p.c fairness stake in Exxon Mobil Company’s proposed low-carbon hydrogen and ammonia manufacturing facility in Baytown, Texas.
The signed settlement “represents a big funding in the US’ (U.S.) vitality manufacturing and the worldwide vitality transition,” the 2 vitality giants mentioned in a joint information launch. The settlement will assist cut back greenhouse fuel emissions throughout hard-to-decarbonize sectors, together with trade, vitality and transportation, meet rising demand for lower-carbon fuels, and speed up a net-zero future.
The power will leverage superior carbon seize and storage applied sciences to scale back emissions related to hydrogen manufacturing. It’s anticipated to be the world’s largest of its sort upon startup, able to producing as much as 1 billion cubic ft (Bcf) every day of low-carbon hydrogen, which is just about carbon-free with roughly 98 p.c of carbon dioxide (CO2) eliminated and greater than 1 million tons of low-carbon ammonia per yr. A ultimate funding resolution (FID) is anticipated in 2025 with anticipated startup in 2029, contingent on supportive authorities coverage and obligatory regulatory permits, in line with the discharge.
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Following the FID for the challenge, ADNOC mentioned it intends to assist ongoing neighborhood initiatives within the Baytown space, in step with the corporate’s dedication to sustainability and training within the areas the place it operates. This dedication displays the corporate’s broader technique to “foster neighborhood improvement and be certain that the advantages of its tasks prolong past environmental good points to incorporate social and financial developments”.
Sultan Ahmed Al Jaber, Minister of Trade and Superior Expertise and ADNOC Managing Director and Group CEO, mentioned, “This strategic funding is a big step for ADNOC as we develop our portfolio of lower-carbon vitality sources and ship on our worldwide development technique. We sit up for partnering with ExxonMobil on this low carbon-intensity and technologically superior challenge to satisfy rising demand and assist decarbonize heavy-emitting sectors”.
Darren Woods, ExxonMobil Chairman and CEO, mentioned, “We admire His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s assist for this groundbreaking partnership. It is a world-scale challenge in a brand new international vitality worth chain. Bringing on the correct companions is vital to accelerating market improvement, and we’re happy so as to add ADNOC’s confirmed expertise and international market insights to our Baytown facility”.
Additionally on the decarbonization entrance, ExxonMobil in July signed a carbon seize and storage (CCS) settlement with CF Industries Holdings, Inc., a producer of ammonia. As a part of the challenge, CF Industries has signed a definitive industrial settlement with ExxonMobil for the transport and sequestration in everlasting geologic storage of CO2, CF Industries mentioned in a separate information launch.
ExxonMobil will transport and completely retailer as much as 500,000 metric tons per yr of captured carbon dioxide (CO2) from CF Industries’ complicated in Yazoo Metropolis, Mississippi, which makes nitrogen merchandise for agricultural fertilizer and different important merchandise. The challenge will allow CF Industries to scale back the location’s CO2 emissions by as much as about 50 p.c, with start-up deliberate for 2028.
ADNOC final month additionally signed an settlement with Malaysia’s Petroliam Nasional Bhd. (Petronas) and Storegga to collaborate on a possible carbon seize and storage (CCS) challenge with a capability of no less than 5 million metric tons each year within the nation.
The Joint Examine and Growth Settlement will consider the aptitude of saline aquifers to retailer CO2 emissions, with a view to constructing a CCS facility within the Penyu Basin offshore Peninsular Malaysia, in line with an earlier joint assertion.
To contact the writer, electronic mail rocky.teodoro@rigzone.com
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