Abu Dhabi’s national oil company buys into U.S. hydrogen project

ADNOC will acquire a 35% equity stake in Exxon Mobil’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.

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.

bu Dhabi National Oil Company (ADNOC) will acquire a 35% equity stake in Exxon Mobil Corp’s proposed low-carbon hydrogen project in Texas, with the companies announcing a one-year start-up delay until 2029. (Image: ExxonMobil)

“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,” said Sultan Ahmed Al Jaber, minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO. “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.”

Terms were not released.

“We appreciate His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s support for this groundbreaking partnership,” said Darren Woods, ExxonMobil chairman and CEO. “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.”

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.