Mitsubishi poised to buy stake, offtake ammonia from Exxon’s Texas project

Mitsubishi (OTCPK:MSBHF) said Friday it is in talks to buy a stake in Exxon Mobil’s (NYSE:XOM) hydrogen project in Baytown, Texas, as well as offtake of low-carbon ammonia from the plant; the Japanese company did not specify the size or value of the stake it is considering.

Mitsubishi (OTCPK:MSBHF) said the low-carbon ammonia would be supplied to various industrial applications, such as power, automobiles, and chemicals, mainly in Japan’s Shikoku and Chugoku regions.

The company said it plans to partner with Japanese oil refiner Idemitsu Kosan (OTCPK:IDKOF) (OTCPK:IDKOY) for joint equity and ammonia offtake from the Exxon (XOM) facility.

Exxon (XOM) is aiming to build the world’s largest low-carbon ammonia plant, producing as much as 1B cf/day of hydrogen, which would have 98% of carbon dioxide removed and more than 1B tons/year of low-carbon ammonia, subject to government support and regulatory permits.

Mitsubishi (OTCPK:MSBHF) said it expects to make a final investment decision in 2025 with an anticipated startup in 2029.