UAE's ADNOC acquires stake in Texas low-carbon hydrogen, ammonia facility
(MENAFN) On Wednesday, the UAE’s Abu Dhabi National Oil Company (ADNOC) signed a significant agreement to acquire a 35 percent stake in a forthcoming low-carbon hydrogen and ammonia production facility located in Baytown, Texas. This facility is a joint project with ExxonMobil, marking a substantial investment by ADNOC in the U.S. energy sector. The signing ceremony, which took place in the presence of Sheikh Khalid bin Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, underscores the UAE’s commitment to advancing global energy transition efforts.
ADNOC’s move is designed to support a responsible and equitable transition in the global energy sector. The agreement aims to help reduce greenhouse gas emissions in hard-to-decarbonize sectors such as industry, energy, and transportation, while also addressing the rising demand for low-carbon fuels. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and ADNOC Group CEO, highlighted that this investment aligns with ADNOC’s strategy to expand its low-carbon energy portfolio and international footprint. He expressed enthusiasm about collaborating with ExxonMobil on this technologically advanced project to meet clean fuel demands and cut carbon emissions.
The Baytown facility is anticipated to become the world’s largest of its kind, contingent on favorable government policies and regulatory approvals in the U.S. It is expected to produce up to one billion cubic feet per day of nearly carbon-free hydrogen by capturing approximately 98 percent of the carbon dioxide from the production process. Additionally, the facility will generate over one million tons per year of low-carbon ammonia. The final investment decision is expected in 2025, with the facility projected to commence operations in 2029.
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