SK to offtake blue ammonia from ExxonMobil’s Baytown complex

SK Inc. Materials will collaborate with ExxonMobil in the blue ammonia business, as part of their plan towards a lower-emission future. The parties have signed a Heads of Agreement (HOA) for SK Inc. Materials to pursue the offtake of blue ammonia from ExxonMobil’s planned low-carbon hydrogen project at its integrated complex in Baytown, Texas, U.S.A.

The blue ammonia production project leverages carbon capture and sequestration technology at ExxonMobil’s low-carbon facility in Baytown. SK is seeking to import blue ammonia produced from ExxonMobil to South Korea in support of reducing industrial emissions.

Blue ammonia is produced by combining nitrogen and hydrogen derived from natural gas feedstocks with the carbon dioxide (CO₂) by-product captured and sequestered for permanent storage, ensuring less carbon is emitted through the process. When co-fired with coal in an existing coal fired power plant (CFPP), blue ammonia emits no additional CO₂, and total emissions from power generation is reduced by the amount of blue ammonia co-fired. Co-firing is a combustion technology that uses two or more fuel sources for power generation.

The window for blue ammonia offtake will coincide with South Korea’s Ammonia Co-firing initiative. SK has plans to introduce blue ammonia solutions to further support the Clean Energy transition. 

“Blue ammonia will replace conventional coal as a main fuel and accelerate energy transition with less carbon footprint and cleaner power,” according to SK.

SK and ExxonMobil will continue the current collaboration framework and work towards additional lower carbon solutions for their mutual benefit.

“Starting with Blue Ammonia collaboration, we look forward to working with ExxonMobil and expanding the partnership into other lower carbon value chains. This partnership marks an important milestone in the introduction of blue ammonia that has higher economic and environmental value, and in establishing a reliable supply chain, connecting suppliers and customers with common goals for cleaner energy,” said Young-Wook Lee, CEO of SK Inc. Materials.

“ExxonMobil’s investment in low-carbon hydrogen and ammonia shows our commitment to reducing our emissions and supporting customers globally in their decarbonisation efforts,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions.