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Adnoc to acquire 35% stake to Exxon’s Texas facility

Strategic partnership aligns with vision to invest in and advance clean energy projects

Adnoc is set to acquire a 35 per cent equity stake in ExxonMobil’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.

The two energy major signed a strategic partnership to this effect on Wednesday, which was witnessed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council.

Sheikh Khaled bin Mohamed emphasised the importance of the collaboration in supporting the UAE’s efforts to ensure the security and sustainability of the global energy sector, and strengthen the UAE’s position as a global producer and supplier of low-carbon hydrogen.

He reaffirmed that the development of the facility aligns with the leadership’s vision to invest in and advance clean energy projects in the UAE and internationally.

The strategic agreement represents a significant investment in US energy production and the global energy transition, aiming to reduce greenhouse gas emissions across hard-to-decarbonise sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels, and accelerate a net-zero future.

Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be the world’s largest of its kind upon startup, capable of producing up to 1 billion cubic feet daily of low-carbon hydrogen which is near carbon-free with approximately 98 per cent of carbon dioxide removed and more than 1 million tonnes of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated startup in 2029.

Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, said: “This strategic investment is a significant step for Adnoc as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy. We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonise heavy-emitting sectors.”

The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production.

Darren Woods, ExxonMobil Chairman and CEO, said: “This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we’re pleased to add Adnoc’s proven experience and global market insights to our Baytown facility.”

Following FID for the project, Adnoc intends to support ongoing community initiatives in the Baytown area, in line with the company’s commitment to sustainability and education in the locations where it operates. This commitment reflects Adnoc’s broader strategy to foster community development and ensure that the benefits of its projects extend beyond environmental gains to include social and economic advancements.