Latest news with #Baytown
Globe and Mail
03-06-2025
- Business
- Globe and Mail
ExxonMobil in the Crosshairs: The Trump Administration Is Cutting Funding for Projects Aimed at Capturing a Potential $4 Trillion Market Opportunity.
The Trump administration is cutting funding to 24 green energy projects totaling $3.7 trillion, 70% of which received approval toward the tail end of the Biden administration. Oil giant ExxonMobil (NYSE: XOM) got caught in the crosshairs of these cuts. It stands to lose $332 million in funding for a carbon capture and sequestration (CCS) project at its refinery complex in Baytown, Texas. Meanwhile, one of its customers will lose funding for a project linked to Exxon. Exxon believes carbon capture and storage could eventually grow into a $4 trillion global market opportunity in the coming decades. Here's a look at the projects getting funding cuts and whether it will impact the oil stock 's ability to grow shareholder value in the future. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Drilling down into the Baytown project Exxon is working to develop the world's largest low-carbon hydrogen and ammonia production facility at its Baytown refinery complex. The facility would produce 1 billion cubic feet of low-carbon hydrogen per day from natural gas and more than 1 million tons of low-carbon ammonia per year. The company will use the hydrogen for its olefins plant at Baytown, which makes building blocks for things like plastics, detergents, and adhesives. It will sell the low-carbon ammonia to global customers (Exxon inked a deal to sell 250,000 tonnes per year to Japan's Marubeni last month). A key aspect of this facility is an associated carbon capture and sequestration project, which would be one of the largest in the world. The project would have the capacity to store up to 10 million metric tons of carbon dioxide per year, equal to the emissions of over 2 million cars. The company estimates that the project would capture 98% of the associated carbon dioxide produced by the facility each year. That low emission profile is appealing to customers like Marubeni. The Japanese company plans to use low-carbon ammonia to fuel a power plant supporting its steelmaking operations. That company agreed to acquire an equity interest in Exxon's project to support its development. Exxon has called Baytown a landmark project and a game changer for its ability to produce low-carbon fuels. The company had hoped to make a positive Final Investment Decision (FID) on the project this year, putting it on track to start producing in the 2027-2028 time frame. However, the FID is contingent on a supportive government policy, which no longer appears to be the case. Calpine's project gets cuts, too Exxon could also feel an indirect impact from the Trump administration's cuts. Power producer Calpine had previously received up to $270 million in funding for its Baytown CCS project in Texas and a second $270 million award for another project in California. The Texas project would capture 95% of the carbon dioxide emissions of its Baytown Energy Facility. This cut could also have an impact on Exxon's CCS ambitions. The oil company inked a deal with Calpine in April to transport and store up to 2 million metric tons of carbon dioxide from its Baytown Energy Center. That would have enabled the energy company to deliver even lower-carbon-natural gas power to customers. That deal was Exxon's sixth contract with customers to transport and store carbon dioxide through its integrated network of pipelines and underground storage hubs. A headwind to watch ExxonMobil sees a huge opportunity ahead for lower-carbon energy. The oil giant is pursuing up to $30 billion in lower emissions investment opportunities like Baytown and CCS transportation and storage projects to support companies like Calpine. It has the potential to add new sources of growth for the oil giant. Further, many of its low-carbon projects would produce less volatile earnings than its oil and gas business because long-term, fixed-rate contracts would back these investments. However, while CCS is a potentially massive opportunity, it's not a major near-term growth driver for Exxon. The company expects to invest $140 billion into major capital projects and its Permian Basin development plan over the next several years, which it believes will fuel $20 billion of additional earnings and $30 billion in incremental cash flow by 2030. So, the potential loss of the Baytown projects shouldn't derail the oil giant's plan to grow shareholder value in the coming years. Should you invest $1,000 in ExxonMobil right now? Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025
Reuters
30-05-2025
- Business
- Reuters
US axes 24 clean energy projects, including at Exxon's Baytown
WASHINGTON, May 30 (Reuters) - The U.S. has axed awards to 24 green energy projects including to an Exxon refinery complex in Texas issued during former President Joe Biden's administration that totaled more than $3.7 billion, the Energy Department said on Friday. The administration of President Donald Trump has said it is evaluating publicly-funded awards and loans issued to emerging technology projects during Biden's administration. It's occurring as the Trump administration pursues the maximization of already record-high oil and gas output while dismantling swaths of Biden's policies on climate and clean energy. The Office of Clean Energy Demonstration awards the department axed include nearly $332 million to a project at Exxon Mobil's (XOM.N), opens new tab Baytown, Texas refinery complex, $500 million to Heidelberg Materials, US in Louisiana, and $375 million to Eastman Chemical Company (EMN.N), opens new tab in Longview, Texas. The Baytown award was meant to cut carbon emissions by enabling the use of hydrogen instead of natural gas for the production of ethylene, a feedstock used in producing textiles and plastic resins. The department said nearly 70% of the awards had been signed between the November 5, 2024, election day and January 20, Biden's last day in office. The companies did not immediately respond to requests for comment. Carbon capture projects aim to help curb climate change by removing the greenhouse gas carbon dioxide directly from the air or from the pollution streams of facilities including refineries, and plants that burn coal, and make ethanol for storage underground. Sometimes the gas is injected into aging oil fields to push out remaining crude. A list seen by Reuters in April of clean energy projects that could be cut by the Trump administration had about two dozen funded by OCED. Four of those were carbon capture pilot projects that were awarded a total of $309 million last year, and three later-stage demonstration projects in California, Texas and North Dakota that received $890 million for integrated carbon capture, transport, and storage technologies.
Trade Arabia
08-05-2025
- Business
- Trade Arabia
Marubeni buys low-carbon ammonia from ExxonMobil
Marubeni and ExxonMobil have signed a long-term offtake agreement for approximately 250,000 tonnes of low-carbon ammonia per year from ExxonMobil's facility in Baytown, Texas, which is expected to produce virtually carbon-free hydrogen with approximately 98% of CO2 removed and low-carbon ammonia. Marubeni will supply the ammonia mainly to Kobe Power Plant, a fully owned subsidiary of Kobe Steel. Marubeni has also agreed to acquire an equity stake in ExxonMobil's low-carbon hydrogen and ammonia facility. ExxonMobil's facility is expected to be the world's largest of its kind upon startup, capable of producing up to 1 billion cubic feet (bcf) daily of low-carbon hydrogen, which is virtually carbon-free, and more than 1 million tons of low-carbon ammonia per year. Contingent on ongoing supportive government policy and necessary regulatory permits, a final investment decision is expected in 2025. 'This is another positive step forward for our landmark project,' said Barry Engle, president of ExxonMobil Low Carbon Solutions. 'By using American-produced natural gas we can boost global energy supply, support Japan's decarbonization goals and create jobs at home. Our strong relationship with Marubeni sets the stage for delivering low-carbon ammonia from the U.S. to Japan for years to come." 'Marubeni will take this first step together with ExxonMobil in the aim of establishing a global low-carbon ammonia supply chain for Japan through the supply of low-carbon ammonia to the Kobe Power Plant,' said Yoshiaki Yokota, Senior Managing Executive Officer, Member of Corporate Management Committee, Supervisor of Energy & Chemicals Div. and Power & Infrastructure Services Div., Marubeni Corporation. 'Additionally, we aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia. We hope to continue to actively cooperate with ExxonMobil, with a view of utilizing this experience and relationship we have built to strategically decarbonize our power projects in Japan and Southeast Asia in the near future.' By Japan's fiscal year 2030, Kobe Power Plant aims to co-fire low-carbon ammonia with existing fuel, reducing CO2 emissions. Through this supply chain, Marubeni aims to assist the decarbonization of not only Japan's power sector but also its hard-to-abate sectors, such as the steel manufacturing industry, chemical industry, transportation industry and others. -TradeArabia News Service
Reuters
07-05-2025
- Business
- Reuters
Exxon agrees to supply Japan's Marubeni with low-carbon ammonia
HOUSTON, May 7 (Reuters) - Exxon Mobil (XOM.N), opens new tab has signed a long-term agreement to supply 250,000 metric tons of low-carbon ammonia annually to Japanese trading house Marubeni (8002.T), opens new tab, the U.S. oil producer said on Wednesday, representing Exxon's first signed customer agreement for its planned hydrogen facility in Baytown, Texas. The agreement is a step forward in Exxon's effort to build the world's largest low-carbon hydrogen facility at its Baytown refining and chemical complex, which has experienced delays. here. Hydrogen, which can be produced from natural gas, is a clean fuel that produces water when it is burned, while ammonia can be used as a carrier for hydrogen, allowing it to be shipped in liquid form. Carbon dioxide from the production of hydrogen will be captured and stored underground, the company said. "This is another positive step forward for our landmark project,' said Barry Engle, president of low carbon solutions at Exxon, in a statement. The customer agreement with Marubeni is contingent on whether Exxon makes its final investment decision to move forward with the Baytown hydrogen facility. Exxon said it expects to make that decision this year, which depends on favorable government policy and regulatory permits. Marubeni will also take an equity stake in Exxon's Baytown hydrogen facility, the companies said. An Exxon spokesperson declined to specify the percentage of the stake.
Bloomberg
07-05-2025
- Business
- Bloomberg
Exxon Signs Low-Carbon Ammonia Sales Deal With Japan's Marubeni
Exxon Mobil Corp. signed a long-term agreement to sell low-carbon ammonia to Marubeni Corp., a crucial step in getting its hydrogen project in Baytown, Texas, off the ground. Exxon will provide the Japanese company with 250,000 tonnes of the fuel a year from Baytown once it's up and running, the Spring, Texas-based company said in a statement. Marubeni, which will use the ammonia to fuel a power plant owned by Kobe Steel Ltd., will also acquire an equity stake in the project.
