Mitsubishi Corp. in Talks to Buy Stake in Exxon Mobil's Texas Project

By P.R. Venkat

Mitsubishi Corp. is in talks to buy a stake in Exxon Mobil's project in Baytown, Texas, which aims to be the world's largest low-carbon ammonia facility.

Exxon's facility is expected to produce virtually carbon-free hydrogen with approximately 98% of carbon dioxide removed and low-carbon ammonia, Mitsubishi said Friday.

The companies will discuss Mitsubishi's offtake of low-carbon ammonia from the facility and equity participation in the project. Mitsubishi didn't indicate the size or value of the stake it is considering.

The low-carbon ammonia facility aims to be the world's largest, producing up to one billion cubic feet daily of low-carbon hydrogen and over one million tons of low-carbon ammonia per year, subject to government support and regulatory permits.

A final investment decision is expected in 2025 with an anticipated startup in 2029, Mitsubishi said.

Mitsubishi said the low-carbon ammonia will be supplied to various industrial applications, such as power, automobiles, and chemicals, mainly in the Shikoku and Chugoku regions in Japan.

It said the company also intends to partner with Idemitsu Kosan for joint equity and ammonia offtake from Exxon's Baytown facility.

"Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors' transition to clean energy," Masaru Saito group chief executive, environmental energy group of Mitsubishi said.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

September 13, 2024 01:27 ET (05:27 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.