The Japanese power utility JERA has reached an agreement with the US’ ExxonMobil to collaborate on a low carbon hydrogen and ammonia production project in the United States. ExxonMobil is currently developing a low-carbon hydrogen production plant at its Baytown Complex east of Houston (Texas, US) expected to produce about 900 kt/year of low-carbon H2 and more than 1 Mt/year of low-carbon ammonia once it starts production in 2028. Under the terms of the agreement, both companies will explore JERA’s ownership participation in the project and the procurement of approximately 500 kt/year of low-carbon ammonia to supply Japan’s demand.
Japan hopes to increase the use of hydrogen as fuel, in a bid to reduce the country’s GHG emissions. Under the approved revised Basic Hydrogen Strategy, Japan plans to increase its hydrogen supply sixfold, from 2 Mt/year currently to around 12 Mt/year by 2040, with an intermediate target of 3 Mt/year in 2030 and a target of 20 Mt/year in 2050.
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