Japanese conglomerate Marubeni Corporation has signed a long-term offtake agreement with ExxonMobil for the annual supply of approximately 250,000 tonnes of low-carbon ammonia. The ammonia will be sourced from ExxonMobil’s planned low-carbon hydrogen and ammonia production facility in Baytown, Texas, which is expected to become one of the world’s largest upon completion.
The ammonia will primarily be delivered to the Kobe Power Plant, operated by Kobe Steel, to support Japan’s efforts to cut emissions from the power sector by the 2030 fiscal year. The plant intends to co-fire low-carbon ammonia with conventional fuels, contributing to the country’s broader decarbonisation strategy.
As part of the agreement, Marubeni will also acquire an equity stake in the Baytown facility. The plant is projected to produce up to 1 billion cubic feet per day of low-carbon hydrogen and more than 1 million tonnes of low-carbon ammonia annually, capturing approximately 98% of the associated CO₂ emissions. A final investment decision is expected in 2025, subject to regulatory approval and supportive policy frameworks.
“This is another positive step forward for our landmark project,” said Barry Engle, President of ExxonMobil Low Carbon Solutions. “By using American-produced natural gas we can boost global energy supply, support Japan’s decarbonization goals and create jobs at home. Our strong relationship with Marubeni sets the stage for delivering low-carbon ammonia from the U.S. to Japan for years to come.”
Yoshiaki Yokota, Senior Managing Executive Officer at Marubeni, added: “Marubeni will take this first step together with ExxonMobil in the aim of establishing a global low-carbon ammonia supply chain for Japan. Additionally, we aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia.”
Marubeni views the deal as a key component of its strategy to decarbonise hard-to-abate sectors such as power, steel, chemicals, and transport by facilitating access to low-carbon fuels.
