Marubeni Corporation and Exxon Mobil Corporation have signed a long-term offtake agreement for the annual supply of approximately 250,000 tonnes of low-carbon ammonia from ExxonMobil’s planned facility in Baytown, Texas. The facility is designed to produce low-carbon ammonia and virtually carbon-free hydrogen, with approximately 98 percent of carbon dioxide removed during production.
Under the agreement, Marubeni will primarily supply the ammonia to the Kobe Power Plant, a wholly owned subsidiary of Kobe Steel, Ltd. In addition to the supply agreement, Marubeni has also committed to acquiring an equity stake in ExxonMobil’s hydrogen and ammonia production facility.
Expected to be the world’s largest facility of its kind upon commencement, ExxonMobil’s Baytown project is designed to produce up to 1 billion cubic feet of low-carbon hydrogen per day and more than 1 million tonnes of low-carbon ammonia per year. A final investment decision is anticipated in 2025, contingent upon supportive government policy and the receipt of necessary regulatory approvals.
Barry Engle, president of ExxonMobil Low Carbon Solutions, commented:
“This is another positive step forward for our landmark project. By using American-produced natural gas, we can boost global energy supply, support Japan’s decarbonisation goals, and create jobs at home. Our strong relationship with Marubeni sets the stage for delivering low-carbon ammonia from the US to Japan for years to come.”
Yoshiaki Yokota, senior managing executive officer and member of the corporate management committee at Marubeni Corporation, added:
“Marubeni will take this first step together with ExxonMobil in the aim of establishing a global low-carbon ammonia supply chain for Japan through the supply of low-carbon ammonia to the Kobe Power Plant. Additionally, we aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia. We hope to continue actively cooperating with ExxonMobil, utilising the experience and relationship we have built to strategically decarbonise our power projects in Japan and Southeast Asia in the near future.”
The agreement aligns with Japan’s national decarbonisation targets, with the Kobe Power Plant aiming to begin co-firing low-carbon ammonia with existing fuels by fiscal year 2030, in an effort to reduce CO₂ emissions.
Beyond the power sector, Marubeni envisions that the newly established supply chain will support decarbonisation in other hard-to-abate industries, including steel manufacturing, chemicals, and transportation, further reinforcing its commitment to advancing low-carbon solutions throughout Japan and Southeast Asia.
For more information visit www.exxonmobil.com
