Exxon Mobil has paused development of what was expected to be one of the world’s largest hydrogen production facilities, citing a lack of committed customers and broader economic uncertainty. Chief Executive Darren Woods confirmed the decision in an interview with the media.
The project, announced in 2022, aimed to produce one billion cubic feet per day of blue hydrogen at Exxon’s Baytown refining and chemical complex in Texas. The company had planned to capture and store emissions from the natural gas–based hydrogen process, but the added cost has deterred potential buyers.
Woods said demand has slumped as industrial activity slows and economic headwinds persist, particularly in Europe. “There’s been a continued challenge to establish committed customers who are willing to provide contracts for off-take,” he noted.
The suspension reflects a wider retreat among oil and gas companies from large-scale clean-energy investments, many of which have struggled to deliver commercial returns. The shift has also been influenced by U.S. President Donald Trump’s withdrawal of federal funding for green initiatives in favour of fossil fuel development.
Exxon and its partners—including Abu Dhabi National Oil Company—have already invested around $500 million in the hydrogen venture, which is expected to require several billion dollars to complete. Woods said the company could revive the project once market demand strengthens, though no timeline has been set.
“We remain convinced that it will be needed, and this will be an advantaged project to meet that need,” he added.
