ExxonMobil, JERA to Explore US-Based Low-Carbon Hydrogen, Ammonia Project

JERA and ExxonMobil have agreed to a Project Framework Agreement (PFA) dedicated to exploring the development of a low-carbon hydrogen and ammonia production project in the United States—more specifically, at ExxonMobil’s low-carbon hydrogen production plant at the Baytown Complex in Houston, TX.

“Cooperation among leading companies is essential to establish supply chains for ammonia, hydrogen, and other products that are key to zero-emission thermal power,” said Steven Winn, JERA’s Senior Managing Executive Officer and Chief Global Strategist. “We believe that working together with ExxonMobil, who is actively promoting investment in carbon capture and storage and hydrogen, will contribute to the transition to a global decarbonized society.”

Signing ceremony for the PFA; Image Credits: JERA

Upon completion, the Baytown plant is expected to have an annual production capacity of approximately 900,000 tons of low-carbon hydrogen and more than 1 million tons of low-carbon ammonia. ExxonMobil slated the start of production for 2028.

“Building world-scale projects for new markets requires supply, demand and supporting regulation to all come together in sync,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “We appreciate JERA’s leadership in helping advance the hydrogen economy and see this agreement as an important catalyst.”

According to the terms of the PFA, JERA will explore ownership participation in the project via purchase of the Baytown hydrogen production plant. The deal also considers JERA’s procurement of approximately 500,000 tons of low-carbon ammonia per year, which will be produced at the Baytown Complex and transported for demand in Japan.

JERA is currently conducting a hydrogen project of its own at an LNG thermal power plant in Japan, which began October 2021 and ends in March 2025. A portion of the LNG fuel at JERA’s plant will be switched over to hydrogen, in which a 5-year evaluation of the resulting operational and environmental characteristics will take place. Pending results of a feasibility study to be conducted early in the project timeline, JERA aims to build hydrogen supply facilities at the thermal plant, install hydrogen-capable combustors, and switch 30% of LNG fuel to hydrogen.

In addition to producing low-carbon alternative fuels such as hydrogen and ammonia, ExxonMobil recently expanded its oil and gas production capacity with a floating production, storage, and offloading (FPSO) vessel called the Prosperity. Commencing production at the Payara offshore site within Guyana’s Stabroek Block, FPSO Prosperity will generate approximately 220,000 barrels of oil per day.

“Each new project supports economic development and access to resources that will benefit Guyanese communities while also helping to meet the world’s energy demand,” said Liam Mallon, President of ExxonMobil Upstream Company. “We’re pleased to work in partnership with the Guyanese government to make reliable energy accessible and sustainable.”