Exxon Mobil Corporation (NYSE:XOM) shares are trading higher premarket Friday. Exxon Mobil inked a Project Framework Agreement with Mitsubishi Corporation (OTC:MSBHF) for participation in its Baytown, Texas facility.
Under the terms of the agreement, the companies will advance talks regarding Mitsubishi's offtake of low-carbon ammonia and equity participation in the project.
The facility is expected to produce low-carbon hydrogen and ammonia by capturing 98% of CO2.
The facility is set to become the world's largest of its kind, capable of producing up to 1 billion cubic feet (bcf) of low-carbon hydrogen daily, with 98% CO2 removal, and over 1 million tons of low-carbon ammonia annually.
A final investment decision is expected in 2025, with startup projected for 2029.
ExxonMobil Low Carbon Hydrogen and ammonia will offer customers a reliable, low-carbon energy source, adhering to high operational standards.
Mitsubishi plans to convert part of its LPG terminal into an ammonia terminal for transshipment, supplying low-carbon ammonia to industries such as power, automotive, and chemical in Japan's Shikoku and Chugoku regions.
Read: Exxon Passes On $10B Namibian Oil Field: Report
Mitsubishi has also created a "Council for Utilizing Namikata Terminal as a Hub for Introducing Fuel Ammonia," aiming to handle 1 million tons of low-carbon ammonia annually by 2030.
Masaru Saito Group CEO, Environmental Energy Group of Mitsubishi Corporation stated, "We are excited to be closely collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains that will bridge the United States and Japan."
"We are also working with Idemitsu Kosan Co.,Ltd., which is developing an ammonia hub near ours and intends to participate in ExxonMobil's hydrogen facility with us. Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors' transition to clean energy."
Also Read: Exxon, Other US Oil Majors Brace For Tropical Storm Francine: Report
Investors can gain exposure to XOM via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and Westwood Salient Enhanced Energy Income ETF (NASDAQ:WEEI).
Price Action: XOM shares are up 0.46% at $111.74 premarket at the last check Friday.
Photo: Del Henderson Jr. via Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
