Exxon Mobil Pushes for Natural Gas Hydrogen’s Inclusion in US Tax Credits
Half of Baytown’s Ammonia Production to be Purchased by JERA in Exxon’s Low-Carbon Hydrogen Project
Exxon Mobil Corp. is advocating for hydrogen produced from natural gas to qualify for US tax credits under the Inflation Reduction Act. This push comes after the company struck a deal with JERA Co., Japan’s largest power provider, to sell low-carbon hydrogen. The agreement entails JERA potentially purchasing 500,000 tons annually, representing half of the ammonia produced from Exxon’s proposed low-carbon hydrogen project in Baytown, Texas.
The process involves converting hydrogen into ammonia, which serves as a means for shipping and storage. Ammonia, derived from hydrogen, can be burned cleanly to generate electricity, contributing to reduced emissions. This collaboration underscores the growing interest in utilizing hydrogen as a clean energy source and highlights the potential for partnerships between energy companies and utilities to advance sustainable practices and technologies.
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Ammonia Agreement Signals Shift Towards Cleaner Energy – Exxon Makes a Move!(PHOTO: getty images)
Exxon Mobil Joins the Global Decarbonization Movement with Hydrogen-based Solutions
Exxon Mobil’s efforts align with the broader global trend toward decarbonization and renewable energy adoption. By leveraging hydrogen as a low-carbon fuel, the partnership with JERA signifies a step towards cleaner energy production and usage, ultimately contributing to environmental sustainability goals on a larger scale.
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