Exxon Mobil to export 'blue' ammonia to Asia from new plant in Texas; details here

American company Exxon Mobil is going to export ammonia to Asia, as told by Dan Ammann, the head of its low-carbon solutions business, to Nikkei.  According to Ammann, the natural gas company is planning to start up what he claimed would be the largest low-carbon hydrogen production facility in the world near Texas’ Houston, as early as 2027. The plan is to commence the shipping of ammonia around 2027 or 2028, and the gas will be blended with coal to generate electricity, according to Ammann.  He is expecting demand from Japan and South Korea for clean-burning fuel to provide impetus for shipments. Notably, South Korean company SK Materials, part of the SK Group conglomerate, informed on Wednesday that it has inked a basic agreement for buying blue ammonia from Exxon. Ammann said about the deal, “Essentially we’re witnessing the creation of a new energy value chain here with this very first off-take arrangement.” The early design contract for the plant was given to the firm last month, and the company plans to make the final investment next year. The Texas facility is going to extract “blue” hydrogen from natural gas and capture carbon dioxide released during the production process. This is going to be converted to ammonia, which is easier-to-transport and can be shipped on chemical tankers to Asia. Exxon is teaming with Japanese company Mitsubishi Heavy Industries for developing carbon capture and storage technology. With this, the oil giant plans to reduce the cost of the technology and sell it to other corporations. The carbon capture equipment has been designed by the Mitsubishi at a coal-fired power plant in Texas. Ammann stated, “We wanted to partner with a leading capture technology provider that has broad application.” According to him, increasing carbon prices as well as policies like the expanded subsidies for carbon capture and storage in the Inflation Reduction Act of US, will significantly expand the market and reduce emissions abatement costs. The company’s plan for five years through fiscal 2027 involves the investment of $17 billion on lower-emission initiatives, as per the media reports.  Of this, 40 percent will be spent on building new profit drivers like hydrogen, biofuels, and carbon capture. The remaining amount will be spent on reducing the company’s own emissions. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.