ExxonMobil to supply low-carbon ammonia to Japan’s Marubeni

SINGAPORE (ICIS)–US-based ExxonMobil Corp has signed a long-term agreement to sell around 250,000 tonnes/year of low-carbon ammonia to Japan’s Marubeni Corp, the companies said.

The fuel will primarily be supplied to Kobe Power Plant – a fully owned subsidiary of Kobe Steel Ltd – in Hyogo prefecture, located in the west of Japan, the US oil and gas major said in a statement on 7 May.

Marubeni has also agreed to acquire a stake in ExxonMobil’s upcoming low-carbon hydrogen and ammonia facility, located in Baytown, Texas, the Japan-based trading firm said.

A final investment decision on the Baytown plant is expected in 2025, and once running, it can produce up to 1 billion cubic feet (bcf) of low-carbon hydrogen daily, ExxonMobil said.

“By using American-produced natural gas we can boost global energy supply, support Japan’s decarbonization goals and create jobs at home,” said Barry Engle, president of ExxonMobil Low Carbon Solutions.

“Marubeni will take this first step together with ExxonMobil in the aim of establishing a global low-carbon ammonia supply chain for Japan through the supply of low-carbon ammonia to the Kobe Power Plant,” said Yoshiaki Yokota, a senior managing executive at Marubeni.

“Additionally, we aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia,” Yokota said.

Financial details of the transactions were not announced.

Kobe Power Plant aims to co-fire low-carbon ammonia with existing fuel by Japan’s fiscal year 2030, supporting the reduction in CO2 emissions.