Marubeni Corporation (Marubeni) and Exxon Mobil Corporation (ExxonMobil) have signed a long-term offtake agreement for approximately 250,000 tpy of low-carbon ammonia from ExxonMobil’s facility in Baytown, Texas, which is expected to produce virtually carbon-free H₂ with approximately 98% of CO₂ removed and low-carbon ammonia. Marubeni will supply the ammonia mainly to Kobe Power Plant, a fully owned subsidiary of Kobe Steel, Ltd. (Kobe Steel). Marubeni has also agreed to acquire an equity stake in ExxonMobil’s low-carbon H₂ and ammonia facility.

ExxonMobil’s facility is expected to be the world’s largest of its kind upon startup, capable of producing up to 1 billion cubic feet (bcf) daily of low-carbon H₂, which is virtually carbon-free1, and more than 1 million tons of low-carbon ammonia per year. Contingent on ongoing supportive government policy and necessary regulatory permits, a final investment decision is expected in 2025.

“This is another positive step forward for our landmark project,” said Barry Engle, president of ExxonMobil Low Carbon Solutions. “By using American-produced natural gas we can boost global energy supply, support Japan’s decarbonization goals and create jobs at home. Our strong relationship with Marubeni sets the stage for delivering low-carbon ammonia from the U.S. to Japan for years to come."

“Marubeni will take this first step together with ExxonMobil in the aim of establishing a global low-carbon ammonia supply chain for Japan through the supply of low-carbon ammonia to the Kobe Power Plant,” said Yoshiaki Yokota, Senior Managing Executive Officer, Member of Corporate Management Committee, Supervisor of Energy & Chemicals Div. and Power & Infrastructure Services Div., Marubeni Corporation. “Additionally, we aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia. We hope to continue to actively cooperate with ExxonMobil, with a view of utilizing this experience and relationship we have built to strategically decarbonize our power projects in Japan and Southeast Asia in the near future.”