ExxonMobil (NYSE: XOM) and Air Liquide announced on June 24, 2024, a strategic agreement aimed at advancing the production of low-carbon hydrogen and low-carbon ammonia at ExxonMobil’s Baytown, Texas facility. This collaboration marks a significant step towards bolstering sustainability efforts in the energy sector, leveraging innovative technologies to reduce carbon emissions.

Under the agreement, Air Liquide will facilitate the transportation of low-carbon hydrogen through its existing pipeline network, facilitating efficient distribution and utilization. Moreover, Air Liquide plans to construct and operate four Large Modular Air separation units (LMAs) at the Baytown site. These units have been designed to provide ExxonMobil with 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen daily to support its operations. Crucially, the LMAs will utilize low-carbon electricity sources, thereby minimizing the environmental impact of the project.

Dan Ammann, President of ExxonMobil Low Carbon Solutions, emphasized the significance of this partnership in advancing sustainable energy solutions: "Momentum continues to build for the world’s largest low-carbon hydrogen project and the emerging hydrogen market. This collaboration with Air Liquide enhances our Baytown project by facilitating hydrogen distribution through existing networks and securing essential feedstocks."

ExxonMobil’s Baytown facility is slated to become the largest hydrogen production facility globally, with projections indicating it will generate approximately 1 billion cubic feet of low-carbon hydrogen daily. Additionally, the facility aims to produce more than 1 million tons of low-carbon ammonia annually, integrating advanced carbon capture technologies to capture over 98% of associated CO2 emissions. This ambitious endeavor underscores ExxonMobil’s commitment to sustainability and its leadership in driving innovations that mitigate climate impact.

Partnering with Air Liquide not only enhances logistical capabilities but also supports the expansion of a low-carbon hydrogen market along the U.S. Gulf Coast. This initiative is poised to empower industrial customers in the region to decarbonize their operations effectively, aligning with broader environmental goals and regulatory frameworks aimed at reducing greenhouse gas emissions.

In conclusion, the agreement between ExxonMobil and Air Liquide signifies a pivotal advancement in the global transition towards low-carbon energy solutions. By combining forces to develop the world’s largest low-carbon hydrogen project, both companies are poised to redefine industry standards and pave the way for a cleaner, more resilient energy landscape. This collaborative effort underscores their shared commitment to driving meaningful environmental impact while meeting the growing demand for sustainable energy alternatives.

ExxonMobil, a leading global energy and petrochemical company, innovates to enhance quality of life and address societal demands. The company's core operations—Upstream, Product Solutions, and Low Carbon Solutions—deliver essential products that support modern living, encompassing energy, chemicals, lubricants, and technologies aimed at reducing emissions.