ExxonMobil has awarded a contract to Technip Energies for the front-end engineering and design (FEED) of the low-carbon hydrogen, ammonia, and carbon capture facility in Baytown, Texas.

Planned to be commissioned between 2022 and 2027, the low-carbon Baytown integrated facility is estimated to cost $7bn for development, reported Reuters.

It will be equipped to produce approximately one billion cubic feet of low-carbon hydrogen per day and capture associated CO₂ emissions of more than 98%, making it the largest of its kind in the world.

The CO₂ is planned to be captured and permanently stored.

The hydrogen project’s carbon capture infrastructure is expected to have the capacity to transport and store up to ten million metric tonnes of CO₂ annually.

Subject to stakeholder support, regulatory permissions, and market conditions, Exxon plans to make the final investment decision for the hydrogen project by 2024.

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ExxonMobil Low Carbon Solutions president Dan Ammann said: “This project allows us to offer significant volumes of low-carbon hydrogen and ammonia to third party customers in support of their decarbonisation efforts.

“In addition, the project is expected to enable up to a 30% reduction in Scope 1 and 2 emissions from our Baytown integrated complex, by switching from natural gas as a fuel source to low-carbon hydrogen.”

ExxonMobil said it is currently in discussions with third party customers for offtake agreements for the proposed facility.

Technip Energies gas and low-carbon energies senior vice-president Loic Chapuis said: “We are very excited to be engaged with ExxonMobil Low Carbon Solutions to help design their low-carbon hydrogen production facility.

“We are committed to advancing the energy transition and this project will be a hallmark in contributing to the decarbonisation of existing facilities and capturing significant volumes of carbon emissions.”