ExxonMobil could supply France’s Trammo with 300,000 to 500,000 tonnes of low-carbon ammonia per year from its planned Baytown hydrogen facility in Texas.
A Heads of Agreement (HOA) has been signed to explore the potential off-take of ammonia. Trammo plans to sell the product in Europe and worldwide for fertiliser production and other industrial applications.
The Baytown facility is believed to be the largest of its type. Once in operation, it will produce up to one billion cubic feet of low-carbon hydrogen daily and more than one million tonnes of low-carbon ammonia per annum.
Read more: ExxonMobil makes major blue hydrogen commitment in the US
Christophe Savi, President of Trammo, said the partnership furthers the company’s goal of making significant volumes of low-carbon ammonia available in the market by 2030.”
A final investment decision by ExxonMobil is expected in 2025 with an anticipated startup in 2029. However, this is subject to supportive government policy, regulatory permitting, and market conditions.
This is uncertain with now-President Trump having signed an executive order to “immediately pause the disbursement of funds” from the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law.
Trump’s stated commitment to expanding US oil and gas production to bolster manufacturing and reduce energy costs casts uncertainty over the future of the IRA and IIJA, particularly their clean energy provisions.
Despite the uncertainty, Barry Engle, President of ExxonMobil Low Carbon Solutions, said the Baytown project continues to make significant strides, attracting more and more customer interest.
Japan’s Mitsubishi and JERA showed interest in off taking ammonia from the plant and investing equity in it in 2024. ADNOC also signed a contract to acquire a 35% stake in the plant.
Read more: ADNOC to acquire 35% stake in ExxonMobil’s Baytown hydrogen project
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