dream team

Mitsubishi, ExxonMobil announce low-carbon ammonia production partnership in Baytown

ExxonMobil and Mitsubishi are still working out details of the arrangement, such as equity participation in the project and use of the low-carbon ammonia. Photo via exxonmobil.com

Spring-based ExxonMobil has teamed up with Japan’s Mitsubishi to potentially produce low-carbon ammonia and nearly carbon-free hydrogen at ExxonMobil’s facility in Baytown.

ExxonMobil and Mitsubishi are still working out details of the arrangement, such as equity participation in the project and use of the low-carbon ammonia.

“We look forward to furthering our leadership position, alongside Mitsubishi Corporation, to advance low-carbon hydrogen and ammonia globally, helping the world achieve a lower emission future,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, says in a news release.

The ammonia would be shipped to Japan for power generation, process heating, and other industrial purposes. In conjunction with this project, Mitsubishi would convert part of a liquified petroleum gas (LPG) terminal into an ammonia terminal. The Japanese conglomerate plans to partner with Japanese petroleum company Idemitsu Kosan for ammonia purchases and a joint equity stake in the Baytown project.

The Baytown project is expected to generate as much as one billion cubic square feet of low-carbon hydrogen per day and more than one million tons of low-carbon ammonia per year.

A financial decision on the project is set for 2025, with the project coming online in 2029.

“We are excited to be closely collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia supply chains that will bridge the United States and Japan,” says Masaru Saito, CEO of Mitsubishi’s Environmental Energy Group. “Together, we will lead this joint initiative to assist in the acceleration of the hard-to-abate sectors’ transition to clean energy.”

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A View From HETI

A new Houston battery storage facility has come online in just six weeks. Photo courtesy FlexGen

Colorado-based energy storage company SMT Energy and North Carolina-based software company FlexGen have begun operations of Houston IV, a 160-megawatt utility-scale battery storage facility that aims to support the ERCOT grid.

The companies delivered the project in just six weeks, according to a news release. Mississippi-based Irby Construction Company served as the engineering, procurement, and construction (EPC) partner, and CenterPoint Energy will serve as the interconnecting utility.

“FlexGen’s distinctive combination of software automation, our remote operations center, and on-the-ground field expertise all work together to accelerate battery deployment,” Jason Rislov, SVP of operations at FlexGen, said in the release. “What used to take 25-plus weeks took us six. That time saved translates directly into giving the grid and consumers what they need most right now: a more reliable, resilient energy system.”

Houston IV is one of more than 12 projects that SMT and FlexGen have built to connect to ERCOT, according to Energy Storage News.

“Bringing a 160-MW battery storage facility online in just six weeks required disciplined planning, seamless coordination, and an unwavering focus on safety and quality,” Shaun Coleman, project manager at Irby Construction, said in a news release. “The SMT Energy, FlexGen, and Irby Construction teams coordinated engineering, procurement, and construction to keep every workstream aligned, identify challenges early, and maintain safety and quality at an accelerated pace. That integration is critical, not only to delivering projects quickly, but also to ensuring battery storage facilities perform reliably over the long term.”

Houston IV is expected to store and provide enough electricity to power 8,800 homes in Texas annually. In March, SMT Energy secured $135 million in funding for the project from Macquarie and KeyBanc Capital Markets as joint lead arrangers. SMT and FlexGen broke ground to signal the start of the process in May.

In 2023, SMT Energy and joint venture partner SUSI Partners also announced plans to add 10 battery storage projects to Texas, which would double capacity from 100 megawatts to 200 megawatts in the Houston and Dallas areas.

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