SEATTLE (Oil Monster): ExxonMobil announced a contract award for front-end engineering and design (FEED), which will play a major role in the development of the world’s largest low-carbon hydrogen production facility in Baytown. The final investment decision is expected by next year, subject to stakeholder approval, regulatory permitting and market conditions.
According to company press release, it has awarded the contract to Technip Energies who will be responsible for the next stage of front-end engineering and design of the low-carbon hydrogen project.
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The project will offer significant volumes of low-carbon hydrogen and ammonia to third party customers. The switch of fuel source from natural gas to low-carbon hydrogen will deliver nearly 30% reduction in Scope 1 and 2 emissions from our Baytown integrated complex, said Dan Ammann, president of ExxonMobil Low Carbon Solutions.
At full capacity, the Baytown low-carbon hydrogen, ammonia and carbon capture facility is expected to produce one billion cubic feet of low-carbon hydrogen per day. The company is reportedly in discussions with customers on offtake agreements for blue hydrogen and ammonia.
The project is scheduled to start up in 2027-2028.