Abu Dhabi’s state oil giant ADNOC is set to acquire a 35% stake in a large-scale hydrogen plant in Texas, a project being developed by Exxon Mobil. The facility is expected to produce up to 1 billion cubic feet of low-carbon hydrogen per day, with around 98% of its carbon dioxide emissions removed. While the investment value wasn’t disclosed, this initiative aligns with Exxon’s broader strategy to help other companies decarbonize and reduce greenhouse gas emissions. ADNOC’s Executive Vice President, Michele Fiorentino, mentioned that the hydrogen could be supplied to Exxon’s refining system or sold to third parties along the Gulf Coast pipeline network.

Fiorentino also noted the potential for producing blue ammonia, which could be shipped to key markets in Northeast Asia and Europe, regions with significant demand for clean energy. A final investment decision on the Texas plant is expected by mid-2025, with production anticipated to begin in 2029. ADNOC is confident that the project’s scale will make its hydrogen production highly cost-competitive, with the possibility of adding a second production train depending on demand.