JERA Co., Inc. has inked a project framework agreement with ExxonMobil to collaboratively explore the development of a low-carbon hydrogen and ammonia production venture in the United States. The agreement comes as ExxonMobil progresses with plans to establish the world’s largest low-carbon hydrogen production plant at its Baytown Complex in Texas, United States, with an anticipated annual production capacity exceeding one million metric tonnes of low-carbon ammonia, slated to commence operations in 2028.

As part of the agreement, JERA and ExxonMobil will assess JERA’s participation in the project and JERA’s procurement of approximately 500,000 metric tonnes annually of low-carbon ammonia from the project to meet Japan’s demand.

JERA is actively engaged in the energy transition, expanding its renewable energy portfolio and advancing zero-emission thermal power technologies, aligning with its 2050 goal of achieving net zero CO2 emissions from both domestic and overseas operations. By establishing and expanding low-carbon hydrogen and ammonia supply chains in collaboration with key domestic and international partners, JERA aims to contribute significantly to global decarbonisation efforts and address energy challenges.

Steven Winn, JERA’s senior managing executive officer and chief global strategist, emphasised the importance of cooperation among industry leaders in establishing supply chains for crucial products like ammonia and hydrogen, essential for zero-emission thermal power. He highlighted the partnership with ExxonMobil, an active advocate for investments in carbon capture and storage and hydrogen, as a significant step towards advancing the transition to a globally decarbonised society.

Dan Ammann, president of ExxonMobil Low Carbon Solutions, echoed the sentiment, underscoring the necessity for alignment of supply, demand, and regulatory support for large-scale projects in emerging markets. He lauded JERA’s leadership in advancing the hydrogen economy and viewed the agreement as a pivotal catalyst in driving progress in this space.

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25th March 2024