ADNOC Agrees to Buy 35% Stake in Exxon’s Hydrogen Project in Baytown

ExxonMobil and ADNOC executives at the signing ceremony in Abu Dhabi (left to right): Geoffrey Richardson, Mohammed Alamin, Darren Woods, H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, H.E. Dr. Sultan Ahmed Al Jaber, Michele Fiorentino, Dr. Abdulla Humaid Al Jarwan. Photo courtesy of Exxon.

ADNOC, a leading diversified energy and petrochemicals group owned by the Emirate of Abu Dhabi, has agreed to acquire a 35% equity stake in Exxon Mobil Corporation’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.

Signed on Sept. 4, 2024, the agreement represents a significant investment in the United States’ (“U.S.”) energy production and the global energy transition. It will help reduce greenhouse gas emissions across hard-to-decarbonize sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels, and accelerate a net-zero future.

Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be the world’s largest of its kind upon startup, capable of producing up to 1 billion cubic feet (bcf) daily of low-carbon hydrogen, which is virtually carbon-free with approximately 98% of carbon dioxide (“CO2”) removed and more than 1 million tons of low-carbon ammonia per year. A final investment decision (“FID”) is expected in 2025 with anticipated startup in 2029.

"This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy. We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonize heavy-emitting sectors,” said Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.

The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. Creating U.S. jobs and supporting community development initiatives, the project’s construction will also bring substantial economic benefits to Baytown, the Houston area and Texas.

“We appreciate His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s support for this groundbreaking partnership. This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we’re pleased to add ADNOC’s proven experience and global market insights to our Baytown facility,” said Darren Woods, ExxonMobil Chairman and CEO.

Following FID for the project, ADNOC intends to support ongoing community initiatives in the Baytown area, in line with the company’s commitment to sustainability and education in the locations where it operates. This commitment reflects ADNOC’s broader strategy to foster community development and ensure that the benefits of its projects extend beyond environmental gains to include social and economic advancements.