US oil and gas business ExxonMobil has signed a long-term offtake deal to supply Japanese trading company Marubeni Corporation with 250,000 tonnes of low-carbon ammonia a year.
ExxonMobil will supply the ammonia from its planned hydrogen plant in Baytown, Texas. This ammonia will be utilised at the Kobe Power Plant, owned by Kobe Steel, in Hyogo prefecture, Japan.
Marubeni has also signed a deal to acquire an equity stake in the Baytown facility.
The Baytown plant is expected to be among the world’s largest blue hydrogen plants, with the capacity to supply enough hydrogen to generate over one million tonnes of ammonia per year, with around 98% of CO2 captured.
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