Adnoc to buy 35% stake in ExxonMobil hydrogen plant

Adnoc

State-owned Abu Dhabi National Oil Company (Adnoc) will acquire a 35 percent stake in US energy company ExxonMobil’s planned large-scale hydrogen and ammonia production facility in Texas.

The production facility – expected to be the world’s largest of its kind upon startup – intends to produce up to one billion cubic feet per day of low-carbon hydrogen, with around 98 percent of carbon dioxide removed, and more than one million tonnes of low-carbon ammonia per year.

The agreement aims to reduce greenhouse gas emissions across hard-to-decarbonise sectors, including industry, energy and transportation, accelerating a net-zero future.

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The facility will also leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production.

It may produce blue ammonia, which could be supplied either to northeast Asia or Europe, Adnoc executive vice president of low carbon solutions and business development Michele Fiorentino told Reuters.

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The value of Adnoc’s investment was not given.

Last year, Adnoc started building the Middle East’s first high-speed hydrogen refuelling station, which will create clean hydrogen from water using an electrolyser powered by clean grid electricity.

The UAE oil company has allocated AED55 billion ($15 billion) to develop decarbonisation technologies to reduce carbon intensity by 25 percent by 2030 and reach its net zero targets by 2045.