Marubeni Corporation has signed a long-term offtake agreement with ExxonMobil to purchase approximately 250,000 tonnes per year of low-carbon ammonia. ExxonMobil will supply the ammonia from its upcoming Baytown facility in Texas, which aims to produce low-carbon hydrogen by capturing about 98% of CO₂ emissions. Marubeni plans to deliver the ammonia primarily to the Kobe Power Plant, a wholly owned subsidiary of Kobe Steel, Ltd.
In addition to the offtake deal, Marubeni has agreed to acquire an equity stake in ExxonMobil’s low-carbon hydrogen and ammonia project—strengthening its strategic position in the global clean energy supply chain.
World’s Largest Low-Carbon Hydrogen and Ammonia Plant
Once operational, ExxonMobil expects its Baytown facility to become the largest of its kind globally. The facility will produce up to 1 billion cubic feet (bcf) per day of virtually carbon-free hydrogen and over 1 million tonnes of low-carbon ammonia annually. ExxonMobil plans to make a final investment decision in 2025, contingent on regulatory approvals and continued supportive government policies.
Strengthening Energy Ties Between the U.S. and Japan
“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 long-term ammonia deliveries from the U.S. to Japan,” added Engle.
Building a Global Low-Carbon Ammonia Supply Chain
Yoshiaki Yokota, Senior Managing Executive Officer, Marubeni, stated, “We are proud to take this first step with ExxonMobil to establish a global supply chain for low-carbon ammonia. This initiative will support Japan’s energy transition and enable future decarbonization efforts across our power and industrial projects in Japan and Southeast Asia.”
Driving Decarbonization Across Hard-to-Abate Sectors
By Japan’s fiscal year 2030, the Kobe Power Plant plans to co-fire low-carbon ammonia with existing fuels. This initiative aims to reduce CO₂ emissions. According to the company press release, Marubeni aims to support the decarbonization of Japan’s power sector through this supply chain. It also seeks to reduce emissions in other hard-to-abate industries such as steel, chemicals, and transportation.
