ExxonMobil announced today that at its integrated refining and petrochemical site in Baytown, Texas, it is planning a hydrogen production plant as well as one of the world’s largest carbon capture and storage projects, supporting efforts to reduce emissions from company operations and local industry.
“Hydrogen has the potential to drastically cut CO2 emissions in critical areas of the economy while also creating important, low-emission goods that sustain a contemporary living,” said Joe Blommaert, president of ExxonMobil Low Carbon Solutions. “By assisting in the activation of new markets for hydrogen and carbon capture and storage, this initiative can help America achieve its lower-emissions goals.”
The proposed hydrogen plant would be able to create up to 1 billion cubic feet of “blue” hydrogen per day, which is a term used in the industry to describe hydrogen produced from natural gas and backed by carbon capture and storage. This project’s carbon capture infrastructure could transport and store up to 10 million metric tons of CO2 per year, more than tripling ExxonMobil’s existing capacity.
ExxonMobil’s goal of achieving net-zero greenhouse gas emissions from its operational assets by 2050 might be aided by using hydrogen as a fuel at the Baytown olefins facility, which could cut the integrated complex’s Scope 1 and 2 CO2 emissions by up to 30%. It would also allow the facility to produce lower-emissions goods for its consumers. Nearby industries would have access to surplus hydrogen and CO2 storage capacity.
ExxonMobil’s contribution to a wide, cross-industry endeavor to develop a Houston carbon capture and storage hub would be roughly 50 million metric tons of CO2 per year by 2030, and 100 million metric tons by 2040. The Baytown project is still being evaluated and planned, and a final investment decision is expected in two to three years, pending stakeholder support, regulatory approval, and market circumstances.
ExxonMobil has vast hydrogen experience and currently generates 1.5 billion cubic feet of hydrogen per day. The firm is in a great position to profit from the rising hydrogen industry, and it is considering strategic investments to expand the usage of this key low-emissions energy source.
The company’s more than 30 years of experience capturing and permanently storing CO2 is also critical. ExxonMobil has absorbed more CO2 from humans than any other corporation, and it owns nearly one-fifth of the world’s carbon capture and storage capacity, which is almost 9 million metric tons per year.
ExxonMobil’s Low Carbon Solutions division was created to commercialize low-emission technologies, with a focus on carbon capture and storage, hydrogen, and biofuels — technologies where the company’s core expertise and competitive advantages can be used. Over the next six years, the firm aims to spend more than $15 billion on lower-emission programs, with the possibility of more spending if policy and technology advances.
Government policies that promote the deployment of essential technologies at the speed and scale necessary to achieve a societal net-zero future will expedite the implementation of these technologies. To encourage the development and scaling of a wide range of low-emission technologies, such as hydrogen and carbon capture and storage, predictable, stable, and cost-effective policies are required. ExxonMobil is committed to explicit carbon pricing in order to create consistent incentives and stimulate investment.
