Texas to Host the World’s Largest Low-Carbon Hydrogen Facility through ADNOC-ExxonMobil Collaboration

The race to lead the global energy transition has made a major breakthrough with the announcement of a groundbreaking partnership between the Abu Dhabi National Oil Company (ADNOC) and ExxonMobil. The two energy giants have joined forces to develop what is poised to become the world’s largest low-carbon hydrogen facility.

The partnership was cemented in an agreement witnessed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi. As part of the deal, ADNOC will acquire a substantial 35% equity stake in this ambitious project, which will be located in Baytown, Texas, a strategic location for global energy operations.

Once operational, the facility will utilize cutting-edge carbon capture and storage (CCS) technology to produce low-carbon hydrogen from natural gas sourced within the U.S. Remarkably, it is expected to capture and eliminate around 98% of the CO2 emissions associated with the process, ensuring that the hydrogen produced is virtually carbon-free.

This innovative approach underscores a significant shift toward decarbonizing key sectors while leveraging advanced technology to minimize environmental impact.

The project will have the capacity to produce up to 1 billion cubic feet of low-carbon hydrogen daily, alongside the production of more than 1 million tons of low-carbon ammonia annually, making it the largest facility of its kind worldwide. Such scale highlights the critical role this project will play in accelerating the global transition to cleaner energy, particularly in decarbonizing hard-to-abate sectors such as industry, energy, and transportation.

A Crucial Role in U.S. Competitiveness

This landmark project not only supports global decarbonization efforts but also enhances U.S. competitiveness in the emerging low-carbon hydrogen market. The facility is anticipated to become a cornerstone of the nation’s clean energy future, leveraging Texas’ rich natural gas reserves while significantly reducing carbon emissions.

The final investment decision (FID) for the project is expected to be made in 2025, with the facility targeted to begin operations by 2029. Once completed, it will solidify the U.S.’s leadership position in hydrogen production and low-carbon energy solutions.

Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, emphasized the strategic importance of this project, stating that it represents a crucial step in ADNOC’s broader commitment to expanding its portfolio of low-carbon energy sources.  Abu Dhabi National Oil Company (ADNOC) is increasingly focusing on such projects as part of its long-term sustainability and energy transition strategy.

Darren Woods, ExxonMobil’s Chairman and CEO, highlighted the significance of the partnership in shaping a new global energy value chain. According to Woods, ADNOC’s experience and market insights are vital to the success of this transformative venture, which could serve as a model for future energy projects globally.

Economic and Community Benefits

Beyond its environmental impact, the low-carbon hydrogen facility is also set to deliver substantial economic benefits to the Baytown region and surrounding communities. The construction and ongoing operation of the facility are expected to create numerous jobs, supporting local economic development and enhancing the area’s infrastructure.

Moreover, ADNOC has committed to aligning this project with its broader social responsibility initiatives. The company is dedicated to supporting ongoing community development projects, ensuring that its investments deliver both social and economic returns. As part of its global strategy, ADNOC aims to ensure that its energy projects contribute positively to the communities they operate in, reflecting its long-term vision for sustainable development.

Conclusion

The partnership between ADNOC and ExxonMobil marks a significant milestone in the global energy transition, demonstrating how collaboration and innovation can drive the development of sustainable energy solutions. With its advanced CCS technology, massive production capacity, and commitment to reducing carbon emissions, this Texas-based facility is set to play a vital role in shaping the future of clean energy. The project not only addresses critical climate challenges but also reinforces the importance of strategic partnerships in creating a more sustainable energy ecosystem.

As the world moves closer to the 2025 final investment decision and looks forward to the 2029 operational launch, the ADNOC-ExxonMobil collaboration will likely serve as a benchmark for future projects in the global push toward decarbonization and the growth of low-carbon energy markets.