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ADNOC to take 35% stake in Exxon's Texas hydrogen plant

Abu Dhabi state oil giant ADNOC will acquire a 35% stake in a prepared Exxon Mobil largescale hydrogen plant in Texas, the business said on Wednesday.

The production center intends to produce approximately 1 billion cubic feet per day of low-carbon hydrogen, with around 98% of co2 eliminated, they said in a declaration, without divulging a value for the investment.

The task becomes part of Exxon's efforts to produce a brand-new organization to make money out of cutting greenhouse gas emissions by other companies wanting to decarbonise their own operations.

ADNOC Executive Vice President of Low Carbon Solutions and Service Development Michele Fiorentino informed Reuters that the output will be used to supply either the refining system of Exxon Mobil or 3rd party purchasers of blue hydrogen linked to the pipeline network in the Gulf coast.

Additionally, Fiorentino stated, it might produce blue ammonia, which will be utilized to supply either Northeast Asia or Europe, which are the two main need centres.

A final investment choice on the project is anticipated around mid-2025 or in the 2nd half of next year, he said.

First production is expected in 2029 and will likely ramp up to complete capability within 12 months, based on require, he added.

ADNOC is fairly confident the demand will exist, Fiorentino stated, adding that the scale of the project will make its hydrogen among the most cost-competitive.

He declined to divulge the job's costs, but indicated it would be in the billions of dollars.

A 2nd train of the very same size could be included if it made sense at that point in time, Fiorentino included.

(source: Reuters)