Mitsubishi and ExxonMobil partner on world’s largest low-carbon hydrogen project

Mitsubishi Corporation and ExxonMobil have signed a Project Framework Agreement to jointly develop the world’s largest low-carbon hydrogen project at ExxonMobil’s facility in Baytown, Texas, U.S.A. This collaboration is set to produce near-carbon-free hydrogen, removing approximately 98% of CO2 from the production process, with plans to generate 1 billion cubic feet of low-carbon hydrogen daily and more than 1 million tons of low-carbon ammonia annually.

Mitsubishi Corporation will also participate in the offtake and equity of the low-carbon ammonia, which will be transported to Japan for power generation and industrial applications. Mitsubishi Corporation aims to convert part of its liquified petroleum gas (LPG) terminal into an ammonia terminal for transshipment, which will then supply the low-carbon ammonia to various industrial applications, such as power, automobile and chemical, mainly in the Shikoku and Chugoku regions in Japan. 

In addition, Mitsubishi Corporation intends to partner with Idemitsu Kosan Co.,Ltd. for joint equity and ammonia offtake from ExxonMobil’s Baytown facility.

“We are excited to be closely collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains that will bridge the United States and Japan. We are also working with Idemitsu Kosan Co.,Ltd., which is developing an ammonia hub near ours and intends to participate in ExxonMobil’s hydrogen facility with us. Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors’ transition to clean energy,” said Masaru Saito Group CEO, Environmental Energy Group of Mitsubishi Corporation.

With a final investment decision expected by 2025 and startup targeted for 2029, the project’s success will hinge on supportive government policies and necessary regulatory approvals. The initiative underscores the growing demand for low-carbon hydrogen and ammonia to meet emissions reduction targets.

Dan Ammann, president of ExxonMobil Low Carbon Solutions, said, “We look forward to furthering our leadership position, alongside Mitsubishi Corporation, to advance low-carbon hydrogen and ammonia globally, helping the world achieve a lower emission future.”