Jera plans to buy stake in ExxonMobil’s Baytown hydrogen project

Japan’s power firm and LNG trader, Jera, is considering buying a stake in ExxonMobil’s proposed hydrogen and ammonia Baytown project in Texas.

Jera said on Monday it had reached a project framework agreement with the US energy giant to jointly explore the development of the hydrogen and ammonia production project.

Under the deal, the two firms will explore Jera’s ownership participation in the project and Jera’s procurement of about 500,000 tonnes annually of ammonia produced by the project for demand in Japan.

ExxonMobil is currently developing what it says would be the world’s largest hydrogen production plant at its Baytown refining and petrochemical complex east of Houston, Texas.

The plant is slated to have an annual production capacity of about 900,000 tonnes of hydrogen and annual production capacity of more than one million tonnes of ammonia.

Jera said the project aims to start production in 2028.

“Cooperation among leading companies is essential to establish supply chains for ammonia, hydrogen, and other products that are key to zero-emission thermal power,” said Steven Winn, Jera’s senior managing executive officer and chief global strategist.

“Building world-scale projects for new markets requires supply, demand, and supporting regulation to all come together in sync,” said Dan Ammann, president of ExxonMobil low carbon solutions.

“We appreciate Jera’s leadership in helping advance the hydrogen economy and see this agreement as an important catalyst,” Ammann said.

Jera’s has been quite busy lately and it recently signed a binding deal with Australia’s LNG player Woodside to buy a 15.1 percent non-operating interest in the Scarborough JV for about $1.4 billion.

The joint venture of Tokyo Electric and Chubu Electric also signed a deal to charter a new LNG carrier form compatriot shipping firm NYK.

- Advertisements -

Most Popular

Report: Egypt’s EGAS charters Hoegh LNG’s FSRU

The Egyptian Natural Gas Holding Company (EGAS) has chartered Hoegh LNG's floating storage regasification and storage unit, Hoegh Galleon,...

Equinor says nobody injured after leak at Hammerfest LNG

Norway’s Equinor has confirmed that there were no injuries following a hydrocarbon leak at its 4.3 mtpa Hammerfest LNG...

Glenfarne’s Texas LNG inks new deal with EQT

US natural gas producer EQT has entered into a second heads of agreement for liquefaction services from Texas LNG’s...

More News Like This

Japan’s Jera gets 4000th LNG cargo at Futtsu terminal

Japan’s power firm and LNG trader, Jera, has received the 4000th cargo of liquefied natural gas at its Futtsu...

Papua New Guinea’s Kumul sells its first spot LNG cargo

Papua New Guinea’s national oil and gas company Kumul Petroleum said it had sold its first spot liquefied natural...

Oman LNG seals supply deal with Jera

State-owned producer Oman LNG said it had signed a deal to supply liquefied natural gas to Japan's Jera. Under the...

Japan’s Jera pens LNG pact with Singapore’s EMA

Japan’s power firm and LNG trader, Jera, has signed a memorandum of understanding with Singapore's Energy Market Authority to...