Exxon Mobil Corporation (NYSE:XOM) on Wednesday inked a long-term offtake deal with Marubeni Corporation.
As per the deal, Marubeni will purchase around 250,000 tonnes of low-carbon ammonia annually from ExxonMobil’s Baytown, Texas facility.
This facility is projected to produce near carbon-free hydrogen, capturing approximately 98% of CO2, which will then be used to create low-carbon ammonia.
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ExxonMobil’s planned facility in Baytown, Texas, is projected to become the world’s largest of its kind upon its startup. It will have the capacity to produce up to 1 billion cubic feet of near carbon-free hydrogen daily (with approximately 98% of CO2 captured) and over 1 million tons of low-carbon ammonia annually.
The final investment decision for this landmark project is anticipated in 2025, contingent upon favorable government policies and the necessary regulatory approvals.
Additionally, Marubeni has agreed to acquire an ownership stake in ExxonMobil’s low-carbon hydrogen and ammonia production facility.
Barry Engle, president of ExxonMobil Low Carbon Solutions said, “By using American-produced natural gas we can boost global energy supply, support Japan’s decarbonization goals and create jobs at home. Our strong relationship with Marubeni sets the stage for delivering low-carbon ammonia from the U.S. to Japan for years to come.”
Last week, the company reported first quarter total revenues and other income of $83.1 billion, which missed the consensus of $86.1 billion and adjusted EPS of $1.76, beating the consensus of $1.70.
Investors can gain exposure to XOM via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and Fidelity MSCI Energy Index ETF (NYSE:FENY).
Price Action: XOM shares are up 0.62% to $105.26 premarket at the last check on Thursday.
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This article Exxon Mobil Says Deal With Japan’s Marubeni To Boost Global Energy Supply originally appeared on Benzinga.com
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