Jera to buy into ExxonMobil’s low-carbon hydrogen/ammonia project

Jera to buy into ExxonMobil’s low-carbon hydrogen/ammonia project

Japanese energy firm Jera Co says it is exploring buying in to US chemical firm ExxonMobil’s 900,000 tonnes/year blue hydrogen project in Baytown, Texas. Jera has reached a project framework agreement with ExxonMobil to jointly explore the development of a low carbon hydrogen and ammonia production project. The agreement comes after Exxon’s Chief Executive Darren Woods said the project could be scrapped if it isn’t eligible for Inflation Reduction Act (IRA) incentives, according to Bloomberg.

ExxonMobil is currently developing what is expected to be the world’s largest low-carbon hydrogen production plant at its Baytown Complex east of Houston, Texas. The plant is slated to have a production capacity of approximately 900,000 tonnes/year of low-carbon hydrogen and capacity of more than 1 million tonnes/year of low-carbon ammonia. The project aims to commence production in 2028.

Under the terms of the agreement, Jera and ExxonMobil will explore:

・Jera’s ownership participation in the project

・Jera’s procurement of approximately 500,000 tonnes/year of low-carbon ammonia produced by the project for demand in Japan

Jera has been exploring multiple clean hydrogen and ammonia supply chains with partners in Europe and the Middle East and adds it is playing an important role in the energy transition and is taking on the challenge of expanding renewable energy and developing zero-emission thermal power technologies. In 2020, the company established a Jera Zero CO2 Emissions 2050 goal of achieving net zero CO2 emissions from domestic and overseas businesses by 2050.

It adds it will continue to contribute to global decarbonisation and solving energy problems by building and expanding low carbon hydrogen and ammonia supply chains in cooperation with leading domestic and overseas companies.

“Cooperation among leading companies is essential to establish supply chains for ammonia, hydrogen, and other products that are key to zero-emission thermal power,” said Steven Winn, Jera’s Senior Managing Executive Officer and Chief Global Strategist.

“Building world-scale projects for new markets requires supply, demand and supporting regulation to all come together in sync,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions.