ADNOC Acquires 35% Stake in Exxon's Hydrogen Project

The Abu Dhabi National Oil Company (ADNOC) has acquired a 35% stake in ExxonMobil's proposed low-carbon hydrogen production facility in Baytown, Texas, projected to become the largest of its kind globally. The investment aligns with ADNOC's strategy to enhance its portfolio in sustainable energy and underscores a shift among oil companies toward greener alternatives. The facility aims to produce up to 1 billion cubic feet of low-carbon hydrogen and over 1 million tons of ammonia annually, with a startup expected in 2029, contingent on regulatory approvals and government policies. This project, which has faced delays due to regulatory and logistical challenges, is significant for both ADNOC and Exxon, as it represents a commitment to reducing greenhouse gas emissions and meeting rising demand for cleaner fuels. The collaboration is also expected to create economic benefits and jobs in the Baytown area. Final investment decisions are anticipated by 2025, reflecting the growing importance of hydrogen in the transition to a low-carbon economy.