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ExxonMobil and partners to assess low-emission hub at Slagen terminal in Norway

ExxonMobil, Grieg Edge, North Ammonia, and GreenH have signed a MoU to study potential production and distribution of green H2 and ammonia for lower-emission marine fuels at ExxonMobil’s Slagen terminal in Norway.

The study will explore the potential for the terminal, which is powered by hydroelectricity, to produce up to 20,000 metric tpy of green H2 and distribute up to 100,000 metric tpy of green ammonia. The H2 would be produced from hydro-powered electrolysis.

“H2 has the potential to significantly reduce CO2 emissions in key sectors of the global economy that create valuable products that support modern life,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “This study will explore the potential for ExxonMobil’s Slagen fuel terminal to help reduce emissions from Norway’s maritime sector and help achieve society’s net-zero ambitions.”

ExxonMobil brings its experience and expertise in developing complex, global projects to advance meaningful greenhouse gas emissions reductions, such as the Slagen terminal opportunity.

Grieg Edge, GreenH and North Ammonia will provide their expertise in sustainable maritime transport, H2 infrastructure, and green H2 and ammonia project development, to study the feasibility for a green H2 and ammonia redistribution facility.

“Slagen is an exceptionally suitable location as a central hub for H2 and ammonia to the maritime sector,” said Matt Duke, CEO of Grieg Maritime Group. “With the complementary expertise amongst the MoU partners, we have now taken an important next step in our efforts to achieve emissions reductions in the maritime sector."

The International Energy Agency projects H2 will meet 10% of global energy needs by 2050, and says it is critical to achieving societal net-zero global emissions. The Norwegian government has published a road map for H2 that includes establishing low-emissions H2 hubs along the coast of Norway. The Slagen terminal is located at the opening of the Oslofjord, where more than 10,000 ships pass through every year.

"There is high value in producing green H2 close to where consumption is,” said Morten S. Watle, CEO of GreenH. “At Slagen, bunkering of H2 could be offered straight from the production facility."

Green ammonia is made by using renewable power to separate H2 from water (electrolysis). When used as a fuel, green ammonia has no carbon and generates zero CO2.

"This MoU underlines our strategy to make ammonia available where there is market demand,” said Vidar Lundberg, CEO of North Ammonia. “We will also assess the potential distribution of ammonia from production facilities south of Slagen."

ExxonMobil is working to commercialize lower-emission technologies and support society’s net-zero ambitions by leveraging the skills, knowledge and scale of the business. In addition to evaluating development of ammonia and H2, the company is pursuing strategic investments in carbon capture and storage and biofuels to help bring those lower-emissions energy technologies to scale for hard-to-decarbonize sectors of the global economy.

ExxonMobil is planning to build one of North America’s largest low-carbon H2 production facilities at its Baytown, Texas petrochemical complex and is also studying potential for a similar facility at its Southampton Fawley complex in the United Kingdom.

ExxonMobil is exploring opportunities to use ammonia as a low-emission and high-efficiency energy carrier, particularly to ship and store H2 over long distances. Ammonia is typically produced from natural gas and is commonly used as an industrial and agricultural chemical, particularly in fertilizer, but has the potential for wide use in power generation, industrial heat and marine fuels.