On June 24, ExxonMobil and Air Liquide announced a significant collaboration to advance the production of low-carbon hydrogen and ammonia at ExxonMobil’s Baytown, Texas facility. This partnership is poised to significantly impact the hydrogen market and contribute to global efforts to reduce carbon emissions.
Project Details and Infrastructure
Air Liquide, a global leader in gases, technologies, and services for industry, will construct and operate four large modular air separation units at the Baytown site. These units will supply 9,000 metric tons of oxygen and approximately 6,500 tons of nitrogen daily.
This critical supply will support the production of low-carbon hydrogen and ammonia. ExxonMobil’s state-of-the-art hydrogen production facility is designed to produce 1 billion cubic feet of low-carbon hydrogen daily and over 1 million tons of ammonia annually.
Strategic Importance of the Partnership
A key project component is the strategic integration of Air Liquide’s infrastructure. Utilizing Air Liquide’s existing pipeline network to transport low-carbon hydrogen will significantly bolster the Baytown facility’s distribution capabilities.
Dan Ammann, President of ExxonMobil Low Carbon Solutions, emphasized the importance of this collaboration: “Momentum continues to build for the world’s largest low-carbon hydrogen project and the emerging hydrogen market. This partnership with Air Liquide further strengthens our Baytown project by enabling hydrogen distribution through existing networks and securing key feedstocks,” he said.
Environmental and Economic Impacts
ExxonMobil’s Baytown hydrogen production facility will be the largest globally, capturing more than 98% of the associated CO2 emissions. This low-carbon hydrogen is crucial for reducing emissions in sectors that are difficult to electrify, such as aviation, shipping, cement, and steel manufacturing.
This project’s ability to produce large volumes of low-carbon hydrogen and ammonia while significantly reducing carbon emissions positions it as a critical contributor to a lower-emission future.
Policy and Market Considerations
A multifaceted approach is necessary for low-carbon hydrogen to meaningfully impact emissions reduction. This includes various methods of low-carbon hydrogen production and robust policies that support demand and end-use across diverse sectors.
Clear and stable policy frameworks are essential to attract the financial investment needed for large-scale projects like the Baytown facility. Ensuring these policies provide long-term certainty will be crucial for encouraging private sector investment and fostering growth in the low-carbon hydrogen market.
Going forward
The ExxonMobil and Air Liquide partnership represents a significant step forward in the quest for sustainable energy solutions. The project’s ability to produce vast quantities of hydrogen and ammonia while capturing nearly all associated CO2 emissions exemplifies the type of innovation needed to address climate change.
Furthermore, the deal highlights the importance of collaborative efforts between industry leaders to achieve environmental goals. By leveraging Air Liquide’s existing assets and expertise, ExxonMobil can more effectively distribute low-carbon hydrogen, accelerating market growth and adoption.