{"id":86738,"date":"2024-09-16T00:00:00","date_gmt":"2024-09-16T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/09\/16\/mitsubishi-to-acquire-stake-in-exxon-hydrogen-plant\/"},"modified":"2024-09-16T00:00:00","modified_gmt":"2024-09-16T00:00:00","slug":"mitsubishi-to-acquire-stake-in-exxon-hydrogen-plant","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/09\/16\/mitsubishi-to-acquire-stake-in-exxon-hydrogen-plant\/","title":{"rendered":"Mitsubishi to acquire stake in Exxon hydrogen plant"},"content":{"rendered":"

Mitsubishi to purchase stake in Exxon hydrogen project: <\/strong>Mitsubishi has finalized a preliminary agreement to offtake low carbon ammonia and purchase a stake in Exxon Mobil\u2019s Texas hydrogen facility, the company shared in a press release<\/a> on Friday. Mitsubishi had initially planned to partner with Idemitsu Kosan on the equity and ammonia offtake to use in Japan. The final decision is expected to be made next year with operations to begin in 2029. The size of the stake and amount of low carbon ammonia to be purchased were not disclosed. <\/p>\n

Mitsubishi is ramping up ammonia projects: <\/strong>The company is considering converting part of its Namikata LPG terminal into an ammonia terminal to supply low-carbon ammonia for industrial use. <\/p>\n

About the plant: <\/strong>The Texas plant is expected to be the largest of its kind in the world<\/a> with a daily production capacity of 1 bn cubic feet of hydrogen and over 1 mn tons of ammonia. Initially slated to be operational by 2028, the project\u2019s launch was pushed to 2029 due to a dispute with the Biden administration over whether the plant qualifies for tax credits under the Inflation Reduction Act.<\/p>\n

REMEMBER- Exxon is lining up offtake agreements and construction partners:<\/strong> Japan\u2019s biggest power producer, Jera, inked a non-binding agreement in March to purchase 500k tons of low-carbon ammonia annually from the plant. France\u2019s Air Liquide agreed to build and operate four large modular air separation units to supply some 9k metric tons of oxygen and 6.5k metric tons of nitrogen to the facility.<\/p>\n

Adnoc is also set to acquire 35% of the Texas project: <\/strong>Abu Dhabi National Oil Company (Adnoc) is set to acquire a 35% stake<\/a> in the low-carbon hydrogen project in Texas under a strategic partnership agreement inked between the two outfits earlier this month. The value of the stake was not disclosed but the final investment decision is set to be made in 2025. <\/p>\n

IN OTHER JAPAN NEWS- Sumitomo enters India\u2019s renewables market: <\/strong>Sumitomo has created a JV with Indian renewables company Ampin Energy Transition to supply wind and solar energy to Indian clients, Reuters<\/a> reported on Friday. Under the JV with Ampin \u2014 which Sumitomo holds a 49% stake \u2014 the two companies plan to funnel YEN 100 bn (USD 710 mn) of investments, with plans to expand even further into India and generate 1 GW of power supply within the next few years.<\/p>\n

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Iberdrola and BP to <\/strong>construct 25 MW<\/strong> green hydrogen plant in Spain: <\/strong>Spanish utility provider Iberdrola and British oil giant BP are set to jointly build a 25 MW green hydrogen plant at BP\u2019s Castell\u00f3n refinery, on Spain\u2019s eastern coast, according to a statement<\/a> released on Thursday. The plant, expected to be operational by 2H 2026, will help decarbonize BP\u2019s refinery operations, avoiding the emission of 23k tons of CO2 annually.<\/p>\n

More details:<\/strong> The project has received EUR 15 mn in funding from Spain's Recovery, Transformation, and Resilience Plan, supported by NextGenerationEU. Powered by 200 GWh\/year of renewable electricity from Iberdrola\u2019s wind and solar projects, the electrolyzer will produce 2.8k tons of green hydrogen yearly, replacing gray hydrogen derived from natural gas. Both companies will share the project\u2019s costs equally but did not disclose the total investment, and operations are slated for 2H 2026.<\/p>\n

BP and Iberdrola have collabed before: <\/strong>BP\u2019s EV charging business BP Pulse and Iberdrola launched a joint venture<\/a> to develop the largest fast and ultra-fast EV charging network in Spain and Portugal in October 2023. With a EUR 1 bn investment, the company aims to deploy 5k charging points by 2025 and 11.7k by 2030, powered by 100% renewable energy. <\/p>\n

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Occidental subsidiary nabs USD 500 mn to fund air capture hub: <\/strong>US-based gas and oil supplier Occidental\u2019s carbon capture unit 1PointFive has secured up to USD 500 mn in funding from the US Department of Energy to develop its South Texas Direct Air Capture (DAC) Hub, according to a statement<\/a>. An initial USD 50 mn award will support engineering, permitting, and equipment procurement for the project, which aims to capture 500k metric tons of CO2 annually, with future expansion to over 1 mn tons. <\/p>\n

Occidental is heading to our neck of the woods:<\/strong> Abu Dhabi National Oil Company (Adnoc) has signed a strategic collaboration agreement with Occidental last year<\/a> to explore potential investment opportunities in carbon dioxide capture and storage (CCS) hubs in the UAE and US. The pair will evaluate the development of DAC facilities in the UAE, including what could be the first megaton DAC project outside of the US, to potentially absorb as much as 1 mn tons of carbon dioxide annually. <\/p>\n

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-<\/strong><\/p>\n