ADNOC acquires stake in Exxon Mobil's Texas hydrogen project

Abu Dhabi's state oil company ADNOC is set to acquire a 35% stake in a major hydrogen plant planned by Exxon Mobil in Texas, according to a joint announcement.

The facility is expected to produce up to one billion cubic feet per day of low-carbon hydrogen, with around 98% of its carbon dioxide emissions captured. Details of the investment were not disclosed.

The project is part of Exxon's strategy to build a business around helping other companies reduce their greenhouse gas emissions as they work toward decarbonization.

ADNOC's Executive Vice President of Low Carbon Solutions and Business Development Michele Fiorentino shared that the hydrogen produced could be used by Exxon Mobil's refining systems or sold to third-party buyers connected to the Gulf Coast pipeline network.

Additionally, the plant could generate blue ammonia, which would be supplied to markets in Northeast Asia or Europe, where demand is high.

A final investment decision is expected by mid-2025, with production projected to begin in 2029 and reach full capacity within a year, depending on demand.

ADNOC is optimistic about the project's competitiveness in the hydrogen market, though specific cost figures were not revealed. Fiorentino also hinted that a second facility of the same scale could be added if market conditions are favorable.