ExxonMobil Corporation and Trammo, Inc. have entered into a Heads of Agreement (HOA) to discuss a long-term agreement for the supply of 300,000 to 500,000 tonnes of low-carbon ammonia annually from ExxonMobil’s cutting-edge facility in Baytown, Texas. This agreement marks a significant step forward in the development of a low-carbon hydrogen project that will support the global transition to cleaner energy. The Baytown facility is set to produce nearly carbon-free hydrogen, with an estimated 98% of the carbon dioxide (CO2) generated being captured, ensuring the facility’s sustainability and environmentally responsible operations.

The low-carbon hydrogen produced at the Baytown facility will serve as a key component in the production of low-carbon ammonia, which has broad applications, including use as a critical feedstock for fertilizers and other industrial purposes. Trammo, an established leader in global commodity trading, will leverage its extensive expertise in market operations and logistics to handle and distribute this ammonia across Europe and worldwide. As ammonia is a key ingredient in fertilizers, which are essential for feeding the world’s growing population, the availability of low-carbon ammonia will contribute significantly to sustainable agricultural practices and reduce the carbon footprint of industrial processes.

The Baytown facility is poised to become the largest of its kind, capable of producing up to 1 billion cubic feet of low-carbon hydrogen per day and more than 1 million tonnes of low-carbon ammonia annually. This ambitious project represents a significant milestone in the development of green hydrogen and ammonia technologies and has the potential to reshape the global energy and chemical industries. However, the project’s full realization depends on a final investment decision, expected by 2025, with a projected startup in 2029. The timeline is contingent on securing supportive government policies, regulatory approvals, and favorable market conditions.

Barry Engle, President of ExxonMobil Low Carbon Solutions, expressed excitement about the growing interest from customers, emphasizing, “Our Baytown project continues to make significant strides, attracting more and more customer interest. We are thrilled to partner with Trammo on this first-of-its-kind project, which would be a win for the U.S. Gulf Coast, creating jobs and enhancing American energy exports while supporting a low-carbon future.”

Christophe Savi, President of Trammo, shared similar enthusiasm, saying, “Trammo is delighted to join forces with ExxonMobil on the Baytown project. This partnership reflects our shared commitment to developing clean, decarbonized solutions for customers worldwide, especially in Europe. Our collaboration with ExxonMobil advances Trammo’s goal of delivering significant volumes of low-carbon ammonia to the market by 2030, helping to address the global need for sustainable and cleaner energy solutions.”

The HOA agreement between ExxonMobil and Trammo is an important step in the energy sector’s transition toward sustainable practices. As demand for low-carbon solutions grows, the Baytown facility stands as a beacon of innovation, and the partnership between ExxonMobil and Trammo brings us closer to a cleaner, greener, and more sustainable future. The development of this project will not only help meet global ammonia demands but also create new opportunities for job creation and energy exports, benefiting both the U.S. economy and the broader global energy landscape.