Under an agreement, hydrogen produced by the Baytown facility will be transported through Air Liquide’s existing pipeline network along the US Gulf Coast in Texas and Louisiana.
The French industrial gas major will also build and operate four large modular air separation units (ASUs) to supply 9,000 tonnes of oxygen and 6,500 tonnes of nitrogen to the facility daily, which it said will cost around $850m.
Expected to start hydrogen production in 2028, the Baytown plant is planned to produce one billion cubic feet of hydrogen per day (around 930,000 tonnes per year), and more than one million tonnes of ammonia annually.
Volumes of Baytown hydrogen for transport in pipeline network have not been disclosed. However, it follows Japanese energy firm JERA announcing plans for a potential partnership to offtake around 500,000 tonnes of low-carbon ammonia per for Japanese demand.
Read more: JERA looks to buy into Exxon’s Texan mega-scale blue hydrogen project
Dan Amann, President of ExxonMobil Low Carbon Solutions, said the partnership with Air Liquide would strengthen the project, after the company’s Chief Executive said the project could be scrapped if it wasn’t eligible for Inflation Reduction Act (IRA) incentives.
A US Department of Energy (DOE) report suggested most blue hydrogen would not meet emissions criteria to grant it access to tax credits offered by section 45V of the IRA.
The modelling for steam methane reforming with CCS estimated a lifecycle emissions intensity of 4.6kgCO2e/kg of hydrogen based on a 96.2% CO2 capture rate. Autothermal reforming (ATR) CCS was estimated at 5.7kgCO2e/kg of hydrogen at a 94.5% capture rate.
To be eligible for the lowest 45V PTC of $0.60/kg, hydrogen has to be produced with 2.5-4kg of CO2e/kg.
Read more: 45V emissions calculation rules could jeopardise blue hydrogen projects
Exxon has selected Topsoe’s SynCOR™ carbon capture technology for the blue hydrogen plant, which it expects to capture more than 98% of CO2.
Final investment decision (FID) is anticipated later this year.
Analysis: Why blue hydrogen prevailed in the battle for the 2020s
After all the peaks and troughs of interest in hydrogen as a potential climate solution over recent decades, the 2020s have delivered a sharper focus on the energy carrier’s potential.
With a growing number of national strategies, billions-of-dollars’ worth of subsidies are now being thrown at boosting production, and increasingly stringent carbon policies are encouraging hydrogen’s uptake.
And while much of that energy, momentum and money has gone into green hydrogen, to the delight of some and the dismay of others, blue hydrogen’s role continues to endure as economies attempt to drive towards a green-tinted future.
But blue hydrogen remains contentious. Proponents say it significantly reduces carbon emissions compared with unabated production, while critics argue it extends the life of oil and gas systems. But one way or another it is a production pathway that is now getting serious attention.
Debates surrounding blue hydrogen are multifaceted – reflecting the challenges and uncertainties in the global energy transition. Aside from the potential emissions benefits, the conversations range from economic viability to technological readiness.
But as challenges stack up against green hydrogen and the need to rapidly decarbonise increases, the case for blue is becoming more compelling to a number of large players…
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