Jera could look at potential ownership participation in ExxonMobil's Baytown project. [Image: Jera]

By Shardul Sharma

Japan's Jera has entered into an agreement with ExxonMobil to jointly explore the development of a low carbon hydrogen and ammonia production project in the US, it said on March 25.

ExxonMobil is currently engaged in the development of a low-carbon hydrogen production plant at its Baytown Complex, located east of Houston, Texas. The plant, scheduled to commence production in 2028, is designed to have an annual production capacity of approximately 900,000 tonnes of low-carbon hydrogen and over 1mn tonnes of low-carbon ammonia annually.

Under the terms of the agreement, Jera and ExxonMobil will explore various aspects of the project, including Jera’s potential ownership participation and procurement of approximately 500,000 tonnes/year of low-carbon ammonia produced by the facility.

Jera said it will continue to contribute to global decarbonisation and solving energy problems by building and expanding low carbon hydrogen and ammonia supply chains in cooperation with leading domestic and overseas companies.

In 2022, Jera partnered with Chevron to develop low carbon solutions in the US and Asia Pacific. Chevron New Energies business, a unit of Chevron, and Jera would collaborate on carbon capture, utilisation, and storage; and new technology ventures.