Exxon Mobil Corporation (NYSE:XOM) shares are trading lower today. The company inked a deal with Abu Dhabi National Oil Company (ADNOC), under which ADNOC will acquire a 35% equity stake in Exxon Mobil's proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.
The agreement marks the company’s significant investment in U.S. energy production and the global energy transition. The final investment decision is anticipated in 2025, with startup projected for 2029.
The facility is expected to become the world's largest of its kind upon startup, subject to supportive government policy and regulatory approvals.
It aims to produce up to 1 billion cubic feet of low-carbon hydrogen daily, with about 98% of CO2 removed, and over 1 million tons of low-carbon ammonia annually.
The company aims to reduce greenhouse gas emissions in hard-to-decarbonize sectors, meet rising demand for lower-carbon fuels, and advance the goal of achieving net-zero emissions.
Also Read: Exxon Bets Big On Oil: Expects Crude Demand To Defy Green Transition
Darren Woods, ExxonMobil Chairman and CEO, said, “This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we’re pleased to add ADNOC’s proven experience and global market insights to our Baytown facility.”
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, stated, “This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy.”
“We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonize heavy-emitting sectors.”
Last month, Exxon Mobil reportedly planned to sell conventional oil assets in the Permian Basin, which could be valued at $1 billion.
Investors can gain exposure to the XOM via Energy Select Sector SPDR Fund (NYSE:XLE) and IShares U.S. Energy ETF (NYSE:IYE).
Price Action: XOM shares are down 0.54% at $114.84 at the last check Wednesday.
Photo: Del Henderson Jr. via Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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