Mitsubishi and ExxonMobil have signed a Project Framework Agreement for Mitsubishi's participation in ExxonMobil's Baytown, Texas facility, which is expected to produce virtually carbon-free hydrogen with 98 per cent CO2 removal and low-carbon ammonia.

The agreement will involve discussions on Mitsubishi's offtake of low-carbon ammonia and equity participation in the project.

The ammonia is expected to be used in Japan for power generation, process heating, and industrial activities.

The facility is expected to be the world's largest upon startup, producing up to 1 billion cubic feet daily of low-carbon hydrogen and over 1 million tons of low-carbon ammonia per year. A final investment decision is expected in 2025, with the plant expected to start in 2029.

"Demand continues to build for ExxonMobil Low Carbon Hydrogen and ammonia," said Dan Ammann President of ExxonMobil Low Carbon Solutions. "We look forward to furthering our leadership position, alongside Mitsubishi Corporation, to advance low-carbon hydrogen and ammonia globally, helping the world achieve a lower emission future."

Mitsubishi Corporation plans to convert part of its liquified petroleum gas (LPG) terminal into an ammonia terminal for transshipment, supplying low-carbon ammonia to power, automobile, and chemical industries in Japan's Shikoku and Chugoku regions.

The company has established a "Council for utilising Namikata Terminal as a Hub for introducing Fuel Ammonia" to handle 1 million tons per year by 2030.

Mitsubishi also plans to partner with Idemitsu Kosan for joint equity and ammonia offtake from ExxonMobil's Baytown facility.

"We are excited to be closely collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains that will bridge the United States and Japan. We are also working with Idemitsu Kosan, which is developing an ammonia hub near ours and intends to participate in ExxonMobil’s hydrogen facility with us. Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors’ transition to clean energy," said Masaru Saito Group CEO, Environmental Energy Group of Mitsubishi Corporation.