ADNOC acquires 35% stake in Exxon Mobil hydrogen plant
The project in Texas is part of Exxon Mobil's efforts to create a new business out of helping other companies decarbonize their operations
Exxon Mobil Chairman and CEO Darren Woods; Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council; and Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC's Managing Director and Group CEO, at the signing ceremony on Wednesday in Abu Dhabi (Emirates News Agency)
The UAE’s state fuel company ADNOC is going into the hydrogen business with Exxon Mobil.
ADNOC signed an agreement with the largest U.S. oil company in Abu Dhabi on Wednesday to acquire a 35% stake in Exxon Mobil’s low-carbon hydrogen and ammonia production plant in Baytown, Texas.
The deal was signed by Dr. Sultan Al Jaber, ADNOC Group CEO and the UAE’s Minister of Industry and Advanced Technology, and Exxon Mobil CEO Darren Woods during a ceremony in Abu Dhabi that was attended by Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council.
The Texas manufacturing plant produces up to 1 billion cubic feet per day of low-carbon hydrogen, with around 98% of the carbon dioxide removed.
The project is part of Exxon Mobil’s efforts to create a new business to make money out of cutting greenhouse gas emissions by other companies looking to decarbonise their own operations, Reuters reports.
ADNOC expects the massive scale of the project to make its hydrogen among the most competitive in the world, Michele Fiorentino, Executive Vice President of Low Carbon Solutions and Business Development, told Reuters, adding the company is “reasonably confident the demand will be there.”
Financial terms of the deal weren’t disclosed though ADNOC indicated it would be worth billions of dollars, the news agency said.