The race to lead the global energy transition has taken a significant leap forward with the announcement of a partnership between Abu Dhabi National Oil Company (ADNOC) and ExxonMobil to develop the world’s largest low-carbon hydrogen facility.

Witnessed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, the agreement will see ADNOC acquire a 35% equity stake in the ambitious project, set to be located in Baytown, Texas.

Once operational, the facility will convert U.S.-produced natural gas into virtually carbon-free hydrogen, utilizing advanced carbon capture and storage technologies to remove approximately 98% of the associated CO2 emissions.

The facility is expected to produce up to 1 billion cubic feet of low-carbon hydrogen daily, along with more than 1 million tons of low-carbon ammonia annually, making it the largest of its kind globally.

This landmark project is poised to play a crucial role in decarbonizing hard-to-abate sectors such as industry, energy, and transportation, while also boosting U.S. competitiveness in the emerging low-carbon hydrogen market. The final investment decision is anticipated in 2025, with the facility expected to commence operations by 2029.

Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, hailed the project as a key step in ADNOC’s strategy to expand its portfolio of low-carbon energy sources. ExxonMobil’s Chairman and CEO, Darren Woods, highlighted the partnership’s importance in creating a new global energy value chain, emphasizing ADNOC’s expertise and market insights as critical to the project’s success.

In addition to its environmental benefits, the facility is expected to bring significant economic advantages to the Baytown area, creating jobs and supporting local community development. ADNOC has committed to supporting ongoing community initiatives in line with its broader strategy to ensure that its projects deliver both social and economic benefits.

By – Vinod Kumar (Dubai)