JERA Co. has entered a Project Framework Agreement with ExxonMobil to collaborate on developing a low-carbon hydrogen and ammonia production project in the United States.
ExxonMobil is planning its inaugural large-scale plant dedicated to low-carbon hydrogen production at its refining and petrochemical facility in Baytown, Texas.
The company aims to utilize natural gas to produce hydrogen while ensuring that over 98% of the resulting CO2 emissions are captured and stored underground. This initiative positions the Baytown site as the largest low-carbon hydrogen project globally upon its targeted launch between 2027 and 2028.
The Low-Carbon Hydrogen Plant at Baytown Complex in Texas
ExxonMobil is currently developing what is anticipated to be the world’s largest low-carbon hydrogen production plant at its Baytown Complex, situated east of Houston, Texas, in the United States.
This plant is expected to boast an annual production capacity of approximately 900,000 tonnes of low-carbon hydrogen alongside an annual production capacity exceeding one million tonnes of low-carbon ammonia. Operations are slated to commence in 2028.
Exxon foresees this project as a significant game-changer for two reasons:
- Firstly, using hydrogen to power the olefins plant at Baytown can reduce site-wide CO2 emissions by up to 30% compared to current operations. This aligns with ExxonMobil’s overarching ambition to achieve net-zero greenhouse gas emissions across its operated assets by 2050.
- Secondly, the carbon capture and storage project integrated into this endeavour would rank among the world’s largest, with the capability of storing up to 10 million metric tons of CO2 annually – equivalent to the emissions from more than 2 million cars. This endeavour could effectively double Exxon’s existing carbon capture and storage capacity of 9 million metric tons annually, leading the industry.
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Project Framework Agreement – Details
JERA Co., Inc., a prominent Japanese energy company, was established in 2015 as a joint venture between TEPCO Fuel & Power and Chubu Electric Power. Since its inception, JERA has risen to become one of Japan’s leading energy firms.
Specializing in various aspects of the energy industry, including electricity and natural gas generation, trading, and supply, JERA maintains a significant presence in both domestic and international energy markets. The company’s global investments in power generation projects play a crucial role in fulfilling Japan’s energy security and sustainability objectives.
Under the terms of the agreement, JERA and ExxonMobil will explore:
- JERA’s potential ownership participation in the Project.
- JERA’s procurement of approximately 500,000 tonnes annually of low-carbon ammonia produced by the Project to fulfill demand in Japan.
Leadership comments on the Project Framework Agreement
Jera Co. Leadership
Steven Winn, Senior Managing Executive Officer and Chief Global Strategist at JERA, highlighted the importance of collaboration among industry leaders in establishing supply chains for ammonia, hydrogen, and other essential products as part of the transition to zero-emission thermal power.
He emphasized the belief that partnering with ExxonMobil, a company actively investing in carbon capture and storage (CCS) and hydrogen, would significantly contribute to the global decarbonization effort.
Exxon Mobil
Dan Ammann, President of ExxonMobil Low Carbon Solutions, underscored the necessity of aligning supply, demand, and supportive regulation in the development of world-scale projects for emerging markets.
He expressed appreciation for JERA’s leadership in advancing the hydrogen economy and characterized the agreement as a pivotal catalyst for progress.
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