JERA and ExxonMobil Team Up for Low Carbon Hydrogen & Ammonia Project

JERA Co., Inc. ("JERA") has entered into a Project Framework Agreement with ExxonMobil to jointly investigate the development of a low carbon hydrogen and ammonia production initiative in the United States.

ExxonMobil is currently progressing with the development of what is anticipated to become the largest low-carbon hydrogen production facility globally, situated at its Baytown Complex in the vicinity of Houston, Texas, United States. Expected to be operational by 2028, the plant is projected to have an annual output capacity of approximately 900,000 tonnes of low-carbon hydrogen and over one million tonnes of low-carbon ammonia per annum.

Under the terms of this agreement, JERA and ExxonMobil will explore:

•    JERA's potential ownership stake in the Project

•   JERA's procurement of roughly 500,000 tonnes of low-carbon ammonia annually from the Project, intended to meet demand in Japan

JERA, a significant participant in the energy transition, is actively engaged in the expansion of renewable energy and the promotion of zero-emission thermal power technologies. In line with its commitment to sustainability, the company set a goal in 2020 to achieve net zero CO2 emissions from both its domestic and international operations by 2050.

JERA is steadfast in its dedication to contributing to global decarbonization efforts and addressing energy challenges by collaborating with prominent domestic and international partners to establish and expand low carbon hydrogen and ammonia supply chains. Steven Winn, JERA's Senior Managing Executive Officer and Chief Global Strategist, emphasized the importance of collaboration among industry leaders in establishing supply chains for ammonia, hydrogen, and other critical products essential for zero-emission thermal power. He expressed confidence that partnering with ExxonMobil, a company actively investing in carbon capture and storage (CCS) and hydrogen initiatives, will play a pivotal role in advancing the transition to a decarbonized global society.

ExxonMobil's President of Low Carbon Solutions, Dan Ammann, underscored the significance of coordinated efforts to realize large-scale projects in emerging markets. He commended JERA for its leadership in driving the hydrogen economy forward and viewed this agreement as a significant catalyst for progress.

JERA was formed through the merger of the fuel and thermal power divisions of Tokyo Electric Power Company and Chubu Electric Power Company. Formed with the dual objectives of establishing a competitive presence in the global energy sector and ensuring a reliable supply of internationally competitive energy, the company seeks to enhance corporate value.

ExxonMobil, a major player in the global energy and chemical manufacturing sectors, dedicates itself to developing and implementing cutting-edge technologies. These innovations aim to meet the world's increasing energy demands and deliver high-quality chemical products in a safe and responsible manner.