ExxonMobil and Trammo pushing for low-carbon ammonia offtake deal

U.S. energy major ExxonMobil and compatriot commodity trading and logistics company Trammo have signed a heads of agreement (HoA) to advance discussions for Trammo’s long-term offtake of 300,000 to 500,000 tonnes of low-carbon ammonia per year from ExxonMobil’s facility in Baytown, Texas.

As disclosed, Trammo will leverage its market and logistical experience to deliver and sell ammonia in Europe and worldwide for fertilizer feedstock and other key industrial applications.

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.

President of ExxonMobil Low Carbon Solutions Barry Engle commented: “Our Baytown project continues to make significant strides, attracting more and more customer interest. We’re looking forward to working with Trammo on this first-of-its-kind project which would be a win for America’s Gulf Coast, creating jobs and enhancing U.S. energy exports.”

Trammo SAS President Christophe Savi said: “Trammo is delighted to partner with ExxonMobil in the Baytown project and to sign this HOA. Both companies have a common interest in developing clean and decarbonized solutions for consumers worldwide, including the European market, and this partnership furthers Trammo’s goal of making available in the market significant volumes of low-carbon ammonia by 2030.”

In other news, in December 2024, Australian engineering and professional services company Worley won an engineering, procurement and construction (EPC) contract for the Baytown project. The company will provide reimbursable EPC services for the enabling works, infrastructure and interconnects scope of the low-carbon hydrogen and ammonia facility.

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.

Other ExxonMobil activities in 2024 include partnerships with French industrial gas supplier Air Liquide and Japanese energy major JERA. Uniting 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 collaboration 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.