Posted on 13 May 2025
US energy giant Exxon Mobil Corporation has signed a long-term offtake agreement for its $7 billion blue hydrogen megaproject in Baytown, Texas.
Under the deal, Japanese conglomerate Marubeni Corporation will purchase 250,000 tonnes/year of blue ammonia to supply Kobe Power Plant, a fully owned subsidiary of Kobe Steel. The fuel will be used to decarbonise the power supply to steelmakers. Marubeni has also agreed to acquire an equity stake in the Baytown facility, Kallanish learns.
Last September, UAE state-owned oil group Adnoc committed to buying a 35% stake in the project for an undisclosed amount. French industrial gases group Air Liquide is also allocating $850 million to join the project.
With operations expected to start in 2029, the complex will have a capacity of 1 billion cubic feet/day of blue hydrogen and 1m t/y of blue ammonia.
Exxon said a final investment decision would be announced this year based on final 45V regulations for hydrogen production credits under the Inflation Reduction Act, which were published in January.
According to analysts at WoodMac, the US economic landscape, including the 45V regulations, provides “significantly better” prospects for blue hydrogen compared to green hydrogen.
Source:Kallanish
