Worley wins EPC contract for ExxonMobil’s low-carbon hydrogen project in Texas

Australian engineering and professional services company Worley will provide reimbursable engineering, procurement and construction (EPC) services to U.S. energy major ExxonMobil for the enabling works, infrastructure and interconnects scope of the latter’s planned low-carbon hydrogen and ammonia facility in Baytown, Texas.

As disclosed, the contract is subject to the final investment decision (FID), as well as supportive government policy and necessary regulatory permits.

Chris Ashton, CEO of Worley, stated: “We are delighted to continue our strategic, global relationship with ExxonMobil in its execution of upcoming projects, particularly in delivering this EPC project on the US Gulf Coast, which contributes significantly to strengthening Worley’s backlog.”

The Baytown facility is expected to produce 28.3 million cubic meters (1 billion cubic feet) of low-carbon hydrogen daily and nearly 1 million metric tonnes (more than 1 million tons) of ammonia annually while capturing more than 98% of the associated CO2 emissions. A final investment decision (FID) is expected in 2025 with an anticipated startup in 2029.

ExxonMobil said the facility will leverage advanced carbon capture and storage (CCS) technologies to reduce emissions associated with hydrogen production, adding that by creating U.S. jobs and supporting community development initiatives, the project’s construction will also bring economic benefits to Baytown, the Houston area and Texas.

It is worth noting that in September 2024, the U.S. major signed an agreement with Abu Dhabi National Oil Company (ADNOC) under which the latter will acquire a 35% equity stake in the facility. Reportedly, the agreement will help reduce greenhouse gas (GHG) emissions across hard-to-decarbonize sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels and accelerate a net-zero future.

In 2024, ExxonMobil also entered agreements with French industrial gas supplier Air Liquide and Japanese energy major JERA regarding the Texas project.

Partnering with Air Liquide, ExxonMobil said the company aims to enable the growth of a low-carbon hydrogen market along the U.S. Gulf Coast to help industrial customers decarbonize their operations.

As for the deal with JERA, the company revealed that the two parties will explore JERA’s ownership participation in the project. Moreover, the deal includes JERA’s procurement of low-carbon ammonia for demand in Japan.