ExxonMobil Partners with Worley for Groundbreaking Hydrogen Production Facility in Texas
In a significant advancement in the energy sector aimed at reducing carbon emissions, ExxonMobil has chosen Australia’s Worley to provide engineering, procurement, and construction services for a state-of-the-art hydrogen and ammonia production facility in Baytown, Texas. This announcement was made public on December 16, 2023, signaling a pivotal step in ExxonMobil’s ongoing commitment to sustainability and innovation in energy production.
Set to be constructed adjacent to ExxonMobil’s extensive Gulf Coast chemicals and refining complex, the new facility is designed to boast a staggering production capacity of 1 billion cubic feet of blue hydrogen per day, alongside the capability to produce 1 million tons of ammonia annually. This ambitious project not only reflects ExxonMobil’s strategic shift towards cleaner energy solutions, but it also positions the facility to potentially become the largest of its type worldwide.
Worley’s contract encompasses a range of critical components, including enabling works, infrastructure development, and interconnectivity solutions essential to the operational success of the facility. Although the exact financial terms of the contract remain undisclosed, Chris Ashton, CEO of Worley, expressed optimism, highlighting the project’s capacity to substantially enhance the company’s backlog of contracts.
This initiative arrives at a crucial time, as ExxonMobil has indicated to investors that it aims to reach a final investment decision in 2024. While the project awaits necessary regulatory approvals, the company has set an ambitious timeline for operational commencement as early as 2029.
A central promise of the Baytown facility is its aspiration to be “virtually carbon-free.” ExxonMobil has outlined plans for the implementation of carbon capture and storage (CCS) technology, which it projects will manage to capture approximately 98% of the carbon dioxide emissions generated by the plant. This equates to around 7 million metric tons of CO2 per year. Moreover, the introduced CCS infrastructure is designed to be accessible to other third-party carbon dioxide emitters in the vicinity, thereby enhancing collective efforts to mitigate carbon footprints in the region.
In a related strategic move earlier this year, ExxonMobil entered into an agreement with Air Liquide to facilitate the transportation of hydrogen produced at the Baytown site through Air Liquide’s expansive pipeline network. As part of this collaboration, Air Liquide will also be responsible for the construction and operation of four large modular air separation units, which will supply vital oxygen and nitrogen to the hydrogen production facility.
Adding to the project’s international dimension, in September 2023, ExxonMobil inked a significant partnership with the Abu Dhabi National Oil Company (ADNOC), which will acquire a 35% equity stake in the hydrogen and ammonia production facility. This move aligns with ADNOC’s strategic objectives to diversify its energy portfolio and invest in lower-carbon energy alternatives. Sultan Ahmed Al Jaber, ADNOC’s managing director and Group CEO, remarked that this investment represents a “significant step” in the company’s journey toward expanding its lower-carbon energy offerings.
Reflecting back to 2022, ExxonMobil also engaged Technip Energies, a French engineering firm, to perform a front-end engineering and design contract for the project. This collaboration further underlines the global nature of the partnerships and expertise being employed in pursuit of this revolutionary energy production facility.
As the world grapples with the pressing challenges of climate change and increasing energy demands, initiatives like the Baytown hydrogen and ammonia facility illuminate the pathways toward achieving a sustainable energy future. By investing in advanced hydrogen production and carbon capture technologies, ExxonMobil and its partners are not only contributing to reduced greenhouse gas emissions but are also positioning themselves at the forefront of the evolving energy landscape.
In summary, the strategic alliance between ExxonMobil and Worley heralds a new chapter in energy production that prioritizes environmental responsibility without compromising on output. This bold commitment is expected to set a new benchmark in the industry and exemplify how traditional energy companies can pivot towards innovative solutions that address global climate challenges.
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