Mitsubishi to Acquire Stake and Secure Ammonia Offtake from ExxonMobil's Texas Operations

Mitsubishi Corporation and Exxon Mobil Corporation have announced a major Project Framework Agreement, marking Mitsubishi’s involvement in ExxonMobil’s upcoming facility in Baytown, Texas. This project aims to produce near carbon-free hydrogen, removing approximately 98% of CO2, alongside low-carbon ammonia. As part of the agreement, Mitsubishi and ExxonMobil will explore Mitsubishi’s role in both the ammonia offtake and equity investment in the facility.

The ammonia produced is slated for use in Japan, serving various industrial needs such as power generation and process heating. If government policies and regulatory approvals align, this facility will become the world’s largest of its kind, with the capacity to generate up to 1 billion cubic feet (bcf) of low-carbon hydrogen daily and over 1 million tons of low-carbon ammonia annually. The final investment decision is anticipated in 2025, with the plant expected to commence operations in 2029.

Dan Ammann, President of ExxonMobil Low Carbon Solutions, highlighted the growing demand for low-carbon hydrogen and ammonia, expressing enthusiasm for advancing these technologies alongside Mitsubishi. "We look forward to strengthening our leadership in low-carbon hydrogen and ammonia globally, contributing to a future with lower emissions," Ammann said.

Mitsubishi Corporation plans to convert part of its liquefied petroleum gas (LPG) terminal into an ammonia terminal for transshipment. This facility will distribute low-carbon ammonia to various industrial sectors in Japan, particularly in the Shikoku and Chugoku regions. The company has established the "Council for Utilizing Namikata Terminal as a Hub for Introducing Fuel Ammonia," aiming to handle approximately 1 million tons of low-carbon ammonia annually by 2030.

Additionally, Mitsubishi will collaborate with Idemitsu Kosan Co., Ltd. to jointly invest in and secure ammonia offtake from ExxonMobil’s Baytown plant. Masaru Saito, Group CEO of Mitsubishi Corporation’s Environmental Energy Group, expressed excitement about this partnership. "We are thrilled to work closely with ExxonMobil to develop a supply chain for low-carbon hydrogen and ammonia connecting the U.S. and Japan. Our collaboration with Idemitsu Kosan will further this initiative, supporting the transition to clean energy in challenging sectors," Saito remarked.

Mitsubishi Corporation (MC) is a leading global business enterprise, managing and operating its activities through a vast network of around 1,800 group companies worldwide. MC is organized into eight Business Groups, each specializing in diverse sectors: Environmental Energy, Materials Solution, Mineral Resources, Urban Development & Infrastructure, Mobility, Food Industry, Smart-Life Creation, and Power Solution. These groups drive MC's operations beyond traditional trading, encompassing project development, production, and manufacturing. By collaborating with trusted partners globally, MC is committed to conducting business with integrity and fairness while focusing on business growth and societal contribution.