Exxon Mobil’s CEO has announced that the company has paused plans to build what would have been one of the world’s largest hydrogen production facilities in Baytown, Texas (US), citing weak customer demand.
The proposed facility, unveiled in 2022, was expected to produce 1 Mt/year of blue hydrogen, hydrogen derived from natural gas, with the resulting carbon dioxide captured and stored underground.
According to the CEO, potential customers have held back due to the higher cost of using hydrogen, while an industrial slowdown and economic uncertainty in Europe have further reduced demand.
The company confirmed that the project, developed in partnership with the Abu Dhabi National Oil Company (ADNOC), could be restarted once market conditions improve and demand strengthens.