ExxonMobil Adds Air Liquide to World’s Largest Low-Carbon Hydrogen Project
ExxonMobil (NYSE: XOM) and Air Liquide have announced an agreement to produce low-carbon hydrogen and ammonia at ExxonMobil's Baytown, Texas facility. This collaboration aims to advance the low-carbon hydrogen market, utilizing Air Liquide's pipeline network for transportation. Air Liquide will also build and operate four Large Modular Air separation units, supplying significant amounts of oxygen and nitrogen, primarily using low-carbon electricity. The project, pending supportive government policies and regulatory permits, is set to produce 1 billion cubic feet of hydrogen daily and 1 million tons of ammonia annually, capturing over 98% of associated CO2 emissions. This initiative aligns with the goal of decarbonizing industrial operations along the U.S. Gulf Coast.
- ExxonMobil's hydrogen facility will produce 1 billion cubic feet of low-carbon hydrogen daily.
- The facility will generate over 1 million tons of ammonia annually.
- More than 98% of the associated CO2 emissions will be captured.
- Air Liquide will supply 9,000 metric tons of oxygen and 6,500 metric tons of nitrogen daily.
- The project uses low-carbon electricity, reducing carbon footprint.
- The final investment decision is subject to supportive government policies and necessary regulatory permits, introducing uncertainty.
ExxonMobil's collaboration with Air Liquide to support the production and transportation of low-carbon hydrogen and ammonia is a significant development in the energy sector. The partnership enhances ExxonMobil's strategic position in the emerging hydrogen market. This project is not just large; it aims to be the world’s largest low-carbon hydrogen facility, which sets a new benchmark in the industry.
The commitment to leverage Air Liquide’s existing pipeline network for distribution is a clever move, as it reduces initial capital expenditure and expedites the deployment process. This kind of infrastructure re-use is both cost-effective and environmentally friendly. Additionally, the scaling up to produce 1 billion cubic feet of low-carbon hydrogen daily and over 1 million tons of ammonia annually indicates a substantial supply capacity that will cater to a wide array of industrial customers seeking to decarbonize their operations.
However, it is important to note that the final investment decision is contingent on supportive government policies and regulatory permits. Investors should closely monitor legislative developments and regulatory approvals, as these could impact the project's timeline and viability. This project, if successful, could position ExxonMobil as a leader in low-carbon technologies, aligning with global trends towards sustainability and decarbonization.
The partnership between ExxonMobil and Air Liquide to develop the world's largest low-carbon hydrogen project is a noteworthy step towards reducing greenhouse gas emissions. The planned capture of more than 98% of CO2 emissions associated with hydrogen production is particularly impressive and could serve as a model for future projects. The use of low-carbon electricity to power the Large Modular Air separation units (LMAs) further emphasizes the project’s commitment to minimizing its environmental footprint.
From an environmental perspective, the scalability of this project could significantly contribute to the decarbonization of the industrial sector. The production of low-carbon hydrogen and ammonia will play a important role in replacing conventional, carbon-intensive processes. The success of such projects can catalyze further investments and innovations in clean energy technologies.
However, the actual environmental impact will depend on the implementation details and the efficiency of carbon capture and utilization technologies. Continuous monitoring and transparency in reporting emissions data will be essential for verifying the environmental benefits claimed by this initiative.
From a financial perspective, ExxonMobil's agreement with Air Liquide to facilitate low-carbon hydrogen production is an ambitious but potentially lucrative venture. The project leverages existing infrastructure, which can lead to cost savings and faster market entry. The projected scale of hydrogen and ammonia production underscores significant revenue potential, especially as demand for low-carbon solutions intensifies.
Investors should consider the long-term financial benefits of this project. The global push towards decarbonization and the adoption of hydrogen as a clean energy source could translate into substantial market demand. Moreover, the collaboration with a veteran player like Air Liquide adds credibility and operational expertise, mitigating some of the execution risks.
However, the project's dependency on government support and regulatory approvals introduces a layer of uncertainty. Any delays or unfavorable policy decisions could affect the financial outlook. Additionally, investors should keep an eye on the competitive landscape, as other energy giants are also vying for a slice of the hydrogen market.
- Agreement aims to advance low-carbon hydrogen market, driving toward a cleaner energy future
- Enables transportation of low-carbon hydrogen from ExxonMobil’s facility through Air Liquide’s existing pipeline network
- Air Liquide supplies oxygen and nitrogen needed to produce low-carbon hydrogen and ammonia
- Final investment decision subject to supportive government policy, necessary regulatory permits
“Momentum continues to build for the world’s largest low-carbon hydrogen project and the emerging hydrogen market,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “This partnership with Air Liquide further strengthens our
ExxonMobil's planned hydrogen production facility will be the world’s largest. It is expected to produce 1 billion cubic feet of low-carbon hydrogen daily, and more than 1 million tons of ammonia annually while capturing more than
Partnering with Air Liquide, ExxonMobil aims to enable the growth of a low-carbon hydrogen market along the
About ExxonMobil
ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.
The corporation’s primary businesses - Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world. ExxonMobil also owns and operates the largest CO2 pipeline network in
With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050. To learn more, visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.
Follow us on LinkedIn.
Cautionary Statement
Statements of future events, investments, or partnerships in this release are forward-looking statements. Actual future results, including project plans, partner participation, timing, capacities, and costs could differ materially depending on a number of factors including the ability to execute operational objectives on a timely and successful basis; implementation of government frameworks and permitting for carbon capture and storage, hydrogen, ammonia and other lower-emission technologies; timely completion of construction projects; commercial and consumer interest in lower-emissions opportunities; changes in plans or objectives prior to final funding decisions or project startups; unforeseen technical or operational difficulties; and other factors discussed under the heading Factors Affecting Future Results in the Investors section of our website at www.exxonmobil.com. Any forward-looking statement speaks only as of the date of this press release and the companies named herein disclaim any obligation to update any forward-looking statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240623153718/en/
Media Relations
(737) 272-1452
Source: Exxon Mobil Corporation
FAQ
What is the main goal of the ExxonMobil and Air Liquide agreement?
How much low-carbon hydrogen will ExxonMobil's facility produce daily?
What quantities of oxygen and nitrogen will Air Liquide supply to ExxonMobil's Baytown facility?
What percentage of CO2 emissions will be captured by ExxonMobil's hydrogen facility?
What is the expected annual production of ammonia at ExxonMobil's new facility?
What are the conditions for the final investment decision of the ExxonMobil low-carbon project?
How does the partnership with Air Liquide benefit ExxonMobil's project?