project uncertainty

ExxonMobil may delay or cancel plans for $7 billion Baytown hydrogen plant

ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call that the company is "concerned about the development of a broader market" for its low-carbon hydrogen plant in Baytown. Photo via exxonmobil.com

Spring-based ExxonMobil, the country’s largest oil and gas company, might delay or cancel what would be the world’s largest low-carbon hydrogen plant due to a significant change in federal law. The project carries a $7 billion price tag.

The Biden-era Inflation Reduction Act created a new 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s "One Big Beautiful Bill Act," the window for starting construction of low-carbon hydrogen projects that qualify for the tax credit has narrowed. The Inflation Reduction Act mandated that construction start by 2033. But the Big Beautiful Bill switched the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call.

Woods said ExxonMobil is working to determine whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit will help pave the way for a “broader” low-carbon hydrogen market.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods said.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

Woods said ExxonMobil is trying to nail down sales contracts connected to the project, including exports of ammonia to Asia and Europe and sales of hydrogen in the U.S.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company has said the plant is slated to go online in 2027 and 2028.

As it stands now, ExxonMobil wants the Baytown plant to produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The company has said the project could store as much as 10 million metric tons of CO2 per year.

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A View From HETI

Simon M. King, a Rice University sophomore, served as the first author on a recent study of a new process for recycling lithium-ion batteries. Photo courtesy Rice

Rice University researchers have uncovered a more energy-efficient and faster way to recycle critical minerals from used lithium-ion batteries.

Traditional methods rely on high heat, long processing times and harsh chemicals to recover a small fraction of critical materials from batteries used in everything from smartphones to electric vehicles. However, the team from Rice's Department of Materials Science and Nanoengineering developed a process that uses a water-based solution containing amino chlorides to extract more metals in less time

The team published the findings in a recent edition of the scientific journal Small.

Simon King, a sophomore studying chemical and biomolecular engineering who completed this work as a summer research fellow at the Rice Advanced Materials Institute, served as first author of the study. He worked with corresponding authors Pulickel Ajayan, the Benjamin M. and Mary Greenwood Anderson Professor of Engineering, and Sohini Bhattacharyya, a research scientist in Ajayan’s lab.

By using a hydroxylammonium chloride (HACI) solution, the team achieved roughly 65 percent extraction of key battery metals in just one minute at room temperature, according to the study. The efficiencies grew to roughly 75 percent for several metals under longer processing times.

“We were surprised by just how fast the reaction occurs, especially without the involvement of high temperatures,” King said in a news release. “Within the first minute, we’re already seeing the majority of the metal extraction take place.”

By not requiring high temperatures or long reaction times, Rice predicts the process could have a major impact on cost and the environmental impact of lithium battery recycling. Additionally, the water-based HACI solution makes waste handling easier and lowers certain environmental risks.

In addition to extracting the materials, the team went on to demonstrate that the recovered metals could be recycled and reprocessed into new battery materials.

“A big advantage of this system is that it works under relatively mild conditions,” Ajayan added in the release. “That opens the door to more sustainable and scalable recycling technologies.”

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