Marubeni and ExxonMobil’s low-carbon ammonia deal marks major step in unleashing new energy supply

Marubeni Corporation has entered into a long-term offtake agreement with Exxon Mobil Corporation for the annual supply of approximately 250,000 tonnes of low-carbon ammonia. This ammonia will be produced at ExxonMobil’s upcoming Baytown, Texas facility, which is designed to generate hydrogen with about 98% of CO₂ emissions removed—resulting in virtually carbon-free hydrogen and low-carbon ammonia. A significant portion of this ammonia will be supplied to the Kobe Power Plant, a wholly owned subsidiary of Kobe Steel, Ltd. Marubeni will also acquire an equity interest in ExxonMobil’s low-carbon hydrogen and ammonia production project.

ExxonMobil’s Baytown facility is set to become the largest of its kind globally upon startup, with an expected production capacity of up to 1 billion cubic feet per day of low-carbon hydrogen and over 1 million tonnes of low-carbon ammonia annually. The final investment decision is anticipated in 2025, pending favorable policy conditions and regulatory approvals.

“This agreement marks another important milestone for our landmark project,” said Barry Engle, President of ExxonMobil Low Carbon Solutions. “By leveraging American-produced natural gas, we aim to enhance global energy security, support Japan’s decarbonization ambitions, and generate employment in the United States. Our longstanding partnership with Marubeni positions us to supply low-carbon ammonia from the U.S. to Japan for years to come.”

Yoshiaki Yokota, Senior Managing Executive Officer at Marubeni Corporation, stated, “Together with ExxonMobil, Marubeni is taking a significant step toward establishing a global supply chain for low-carbon ammonia, starting with supply to the Kobe Power Plant. Our collaboration aims not only to support Japan’s energy transition but also to explore the creation of a global market for low-carbon ammonia. We look forward to expanding this partnership to help decarbonize our energy projects in Japan and Southeast Asia.”

The Kobe Power Plant plans to begin co-firing low-carbon ammonia with conventional fuels by Japan’s fiscal year 2030, contributing to a reduction in CO₂ emissions. Through this initiative, Marubeni seeks to support Japan’s decarbonization across multiple sectors, including power generation, steel manufacturing, chemicals, and transportation.