ExxonMobil (NYSE: XOM) and Air Liquide have embarked on a monumental collaboration to escalate the production of low-carbon hydrogen and ammonia at ExxonMobil’s expansive facility in Baytown, Texas. This strategic alliance is poised to revolutionize the hydrogen market, particularly focusing on the burgeoning demand for cleaner energy sources. Air Liquide commits up to $850 million to construct and manage four state-of-the-art Large Modular Air separation units (LMAs), marking this venture as the largest industrial investment in Air Liquide’s history.

The partnership aims to facilitate the transport of low-carbon hydrogen through Air Liquide’s extensive pipeline network, enhancing the project’s logistical capabilities. These LMAs, driven primarily by low-carbon electricity, are set to significantly diminish the carbon footprint associated with their operations, aligning with global decarbonization goals. The new units will produce 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen daily, critical for the synthesis of low-carbon hydrogen and ammonia.

This initiative not only supports ExxonMobil’s ambition to establish the world’s largest low-carbon hydrogen production facility—expected to generate 1 billion cubic feet of hydrogen daily—but also emphasizes the capture and permanent storage of over 7 million tons of CO2 annually. The project’s success hinges on a favorable regulatory environment and supportive government policies, which are crucial for final investment decisions.

François Jackow, CEO of Air Liquide, highlighted the project’s significance: “Our Baytown Low Carbon platform project demonstrates our capacity to innovate and leverage on our footprint in the U.S. to actively contribute to the decarbonization of the industry. Through this new agreement with ExxonMobil, Air Liquide is proud to support the development of what is poised to be the world’s largest low-carbon platform while reinforcing its gas offering in this key industrial basin.”

The collaboration between ExxonMobil and Air Liquide represents a critical step forward in the energy sector’s transition towards more sustainable operations. By integrating advanced separation technology and renewable energy sources, this project sets a new standard for industrial-scale low-carbon hydrogen production, offering a blueprint for future developments in the energy sector.

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