The facility in Baytown is expected to produce 28.3 million cubic meters of low-carbon hydrogen daily. Photo via exxonmobil.com

ExxonMobil selected Australia-based engineering and professional services company Worley to provide engineering, procurement and construction services for a proposed hydrogen and ammonia production facility in Baytown, which is expected to have a production capacity of 1 billion cubic feet of blue hydrogen per day. ExxonMobil expects the facility will be the largest of its kind in the world.

“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,” Chris Ashton, CEO of Worley, states, according to Offshore Energy.

The facility in Baytown 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 per year, which will also capture more than 98 percent of the associated CO2 emissions.

The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. ExxonMobile also said its carbon capture and storage system would be available for use by third-party CO2 emitters in the area.

A final investment decision is expected in 2025 , and an anticipated startup in 2029. “Blue” hydrogen is expected to be a top energy driver in 2025 according to global consultancy Wood Mackenzie who predicts that at least three large-scale blue hydrogen projects in the U.S will reach FID by next year.

The company hopes the new facility will help in creating U.S. jobs and supporting community development initiatives throughout the Houston area, and the state.

Houston global engineering firm McDermott will design a Louisiana project to produce millions of tons of clean ammonia. Image via cleanhydrogenworks.com

Houston group secures contract for major clean ammonia project in Louisiana

locked in

Houston-headquartered McDermott has received a new contract on a Louisiana clean ammonia project.

Clean energy development company Clean Hydrogen Works tapped McDermott for the front-end engineering and design contract for the Ascension Clean Energy Project. ACE — located in Ascension Parish, Louisiana — is jointly developed by CHW with strategic shareholders ExxonMobil, Mitsui O.S.K. Lines, and Hafnia and is expected to initially produce 2.4 million metric tons per annum of clean ammonia and expand to total 7.2 million metric tons per annum production down the road.

“We are thrilled to partner with McDermott, a company renowned for its extensive experience in mega module construction, demonstrated by a remarkable track record of on-time, on-budget execution of major energy and chemicals projects," Johnny Cook, CHW senior vice president of engineering, procurement, and construction, says in a news release. "This collaboration further strengthens key competitive advantages of our project, including being a mega module capable site with ready infrastructure access to gas, shipping and CCS, an unmatched shareholder base with expertise in CCS and maritime transport, and an experienced team with demonstrated success in executing mega module projects.”

The project has carbon capture and sequestration contracts with ExxonMobil and expects regulatory approvals by early 2025. ACE is expected to reach its final investment decision by late 2025 and start production in 2029. McDermott’s Houston office will lead the project with support from its Gurugram, India, office.

“This FEED award is testament to McDermott’s industry-leading mega-module delivery and installation expertise, and the breadth of our capabilities across the energy transition,” Rob Shaul, McDermott’s senior vice president of Low Carbon Solutions, adds. “Our integrated delivery model, with self-perform construction capabilities and portfolio of McDermott-owned, globally diversified, module fabrication yards means we can offer CHW a repeatable modular implementation solution that is expected to maximize value, reduce risk and provide quality assurance.”

Earlier this year, Houston-based Element Fuels completed the pre-construction phase of its hydrogen-powered clean fuels refinery and combined-cycle power plant in the Port of Brownsville — a project that McDermott is also providing FEED services for.

Also recently, McDermott secured an agreement to work on Canada's first commercial green hydrogen and ammonia production facility.

The University of Houston's new hydrogen program selected an Houston executive's team as the top project of the course. Photo via Getty Images

Houston energy leader wins hydrogen program's competition

top project

An executive from Houston-based SCS Technologies is celebrating a win from his time at the University of Houston Hydrogen Economy Program.

Cody Johnson, CEO of SCS Technologies, a provider of CO2 measurement systems, petroleum LACT units, and methane vapor recovery units, was on the winning 2024 Spring Capstone Project team for the UH program with the project, "Business Roadmap for Utilizing Hydrogen in Houston." The presentation outlined possible profits of $1.8 billion over the contract life with $180 million in green H2 investments.

The winning capstone project demonstrated the implementation of decarbonization processes. It included the enhancement of “capacity utilization in existing industrial hydrogen production along the Houston Ship Channel through amine capture technology,” according to a news release.

The team also identified business opportunities in producing ammonia as a liquid carrier by using the Haber-Bosch process that would leverage maritime ammonia tanker fleets to ship to Western Europe and Northeast Asia markets.

"It was an honor to collaborate with my Hydrogen Economy Program teammates to explore business opportunities using existing technologies to produce clean hydrogen and reinvest profits to further advance decarbonization efforts in the future," Johnson says in a news release. "I extend my gratitude to the University of Houston for assembling top-notch resources on the critical topic of clean hydrogen production. By bringing together students, corporate leaders, engineers, and scientists, we are able to join forces to accelerate the renewable hydrogen economy."

Cody Johnson is the CEO of SCS Technologies, a provider of CO2 measurement systems, petroleum LACT units, and methane vapor recovery units. Photo courtesy of SCS

UH’s Hydrogen Economy Program helps energy professionals and students strategically at the world’s energy hub in the Houston area. The program provides a forum for information from faculty and industry leaders. Participants in the University of Houston Hydrogen Economy Program can develop a capstone project by using knowledge from the completed course and then present a business plan for a clean hydrogen start-up venture. The projects were evaluated by a panel of judges after class presentations.

"At the University of Houston, we are committed to advancing the energy transition by bringing diverse skills and knowledge together," Alan Rossiter, executive director of external relations and educational program development for UH Energy, says in a news release. "The Hydrogen Economy Program is one of the many ways we achieve this. With the new cohort beginning in August and registration now open, we look forward to working with a new group of passionate, curious, and intelligent energy professionals and students."

The Hydrogen Economy is a part of UH Energy's Sustainable Energy Development portfolio. The Hydrogen Economy Program is a joint effort by UH and the American Institute of Chemical Engineers.

Led by Haotian Wang (left) and Feng-Yang Chen, the Rice University team published a study this month detailing how its reactor system sustainably converts waste into ammonia. Photo by Jeff Fitlow/Rice University

Houston lab develops reactor that sustainably turns waste into ammonia

seeing green

A team of Rice University engineers has developed a reactor design that can decarbonize ammonia production, produce clean water and potentially have applications in further research into other eco-friendly chemical processes.

Led by Rice associate professor Haotian Wang, the team published a study this month in the journal Nature Catalysis that details how the new reactor system sustainably and efficiently converts nitrates (common pollutants found in industrial wastewater and agricultural runoff) into ammonia, according to the university. The research was supported by Rice and the National Science Foundation.

“Our findings suggest a new, greener method of addressing both water pollution and ammonia production, which could influence how industries and communities handle these challenges,” Wang says in a statement. “If we want to decarbonize the grid and reach net-zero goals by 2050, there is an urgent need to develop alternative ways to produce ammonia sustainably.”

Other methods of creating ammonia include the Haber-Bosh process and electrochemical synthesis. The Haber-Bosh process requires large-scale centralized infrastructure and high temperature and pressure conditions. Meanwhile, electrochemical synthesis requires a high concentration of additive chemicals.

According to Rice, the new reactor requires less additive chemicals than the electrochemical synthesis, allowing nitrates to be converted more sustainably. The reactor relies on an innovative porous solid electrolyte as well as recyclable ions and a three-chamber system to improve the reaction’s efficiency.

Additionally, this development provides an effective water decontamination method.

“We conducted experiments where we flowed nitrate-contaminated water through this reactor and measured the amount of ammonia produced and the purity of the treated water,” Feng-Yang Chen, a Rice graduate student who is the lead author on the study, says. “We discovered that our novel reactor system could turn nitrate-contaminated water into pure ammonia and clean water very efficiently, without the need for extra chemicals. In simple terms, you put wastewater in, and you get pure ammonia and purified water out.”

Pedro Alvarez, the George R. Brown Professor of Civil and Environmental Engineering, director of the Nanosystems Engineering Research Center for Nanotechnology-Enabled Water Treatment (NEWT) and the Water Technologies Entrepreneurship and Research (WaTER) Institute at Rice, says the reactor is "very timely and important" for growing cities that must deal with nitrate-contaminated groundwater supplies it.

"Conventional nitrate removal in drinking water treatment involves ion exchange or membrane filtration by reverse osmosis, which generates brines and transfers the nitrate problem from one phase to another,” he continues.

Wang's lab has been making headlines in recent years for innovative processes and technologies focused on the energy transition.

Last year, the lab published a study in Nature detailing a new technology that uses electricity to remove carbon dioxide from air capture to induce a water-and-oxygen-based electrochemical reaction, generating between 10 to 25 liters of high-purity carbon using only the power of a standard lightbulb.

In 2022, Rice reported that Wang’s lab in the George R. Brown School of Engineering had also replaced rare, expensive iridium with ruthenium, a more abundant precious metal, as the positive-electrode catalyst in a reactor that splits water into hydrogen and oxygen.

The lab received a portion of $10.8 million in research grants from the Houston-based Welch Foundation for research focused on converting carbon dioxide into useful chemicals, such as ethanol, last year. And Solidec, founded by Ryan Duchanois and Yang Xia from Wang's Lab, also received a $100,000 award from Rice as part of the One Small Step Grant program.

Wang has also been named among one of the most-cited researchers in the world.
The deal will enable transportation of ExxonMobil’s low-carbon hydrogen through Air Liquide’s pipeline network. Photo via exxonmobil.com

ExxonMobil’s low-carbon hydrogen project in Baytown adds Air Liquide as partner

team work

Spring-based energy giant ExxonMobil has enlisted Air Liquide as a partner for what’s being billed as the world’s largest low-carbon hydrogen project.

The deal will enable transportation of ExxonMobil’s low-carbon hydrogen through Air Liquide’s pipeline network. Furthermore, Air Liquide will build and operate four units to supply 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen each day for the ExxonMobil project.

Air Liquide’s U.S. headquarters is in Houston.

ExxonMobil’s hydrogen production facility is planned for the company’s 3,400-acre Baytown refining and petrochemical complex. The project is expected to produce 1 billion cubic feet of low-carbon hydrogen daily from natural gas and more than 1 million tons of low-carbon ammonia annually while capturing more than 98 percent of the associated carbon emissions.

“Momentum continues to build for the world’s largest low-carbon hydrogen project and the emerging hydrogen market,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, says in a news release.

The hydrogen project is expected to come online in 2027 or 2028.

ExxonMobil says using hydrogen to fuel its olefins plant at Baytown could reduce sitewide carbon emissions by as much as 30 percent. Meanwhile, the carbon capture and storage (CSUS) component of the project would be capable of storing 10 million metric tons of carbon each year, the company says.

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Houston renewable fuel company expands reach with latest acquisition

fueling up

Houston-based Freedom CNG, a provider and distributor of compressed renewable natural gas, has acquired ComTech Energy, a Canada-based provider of on-site mobile refueling for compressed renewable natural gas. The purchase price wasn’t disclosed.

The acquisition allows Freedom CNG to adopt a hub-and-spoke operational model, allowing customers to move away from fixed fueling infrastructure with low-carbon energy solutions across North America, according to a news release.

In conjunction with the deal, ComTech President James Ro has joined Freedom CNG as chief commercial and strategy officer.

“As we expand our footprint in low‑carbon fuel solutions, acquiring ComTech Energy marks an important step in enhancing our ability to deliver efficient, innovative fueling infrastructure,” Nick Kurtenbach, president and chief financial officer of Freedom CNG, said in the release. The acquisition, he added, “allows us to offer a more comprehensive suite of solutions that support the transition to cleaner energy and meet the evolving needs of our customers.”

Freedom CNG’s North American footprint now spans more than 25 fueling stations for compressed renewable natural gas and over 60 operations and maintenance sites across the U.S. and Canada.

This is the third acquisition for Freedom CNG in the last two months. It also recently acquired Colorado-based X3 CNG and Utah-based Lancer Energy, according to a representative from Freedom CNG, this summer. The company services regional trucks, buses and service vehicles, as well as heavy construction, agriculture, data centers and other sectors.

Last year, funds affiliated with alternative asset manager Apollo bought a majority stake in Freedom CNG, which was founded in 2012. The value of the deal wasn’t disclosed.

“Freedom has developed a strong portfolio of [renewable natural gas] fueling stations with meaningful growth potential driven by established relationships with blue-chip customers and attractive new development opportunities,” Apollo partner Scott Browning said in 2024.

1PointFive secures new buyer for Texas CO2 removal project​

seeing green

Houston’s Occidental Petroleum Corp., or Oxy, and its subsidiary 1PointFive have secured another carbon removal credit deal for its $1.3 billion direct air capture (DAC) project, Stratos.

California-based Palo Alto Networks has agreed to purchase 10,000 tons of carbon dioxide removal (CDR) credits over five years from the project, according to a news release.

The company joins others like Microsoft, Amazon, AT&T, Airbus, the Houston Astros and the Houston Texans that have agreed to buy CDR credits from 1Point5.

"Collaborating with 1PointFive in this carbon removal credit agreement highlights our proactive approach toward exploring innovative solutions for a greener future,” BJ Jenkins, president of Palo Alto Networks, said in the release.

The Texas-based Stratos project is slated to come online this year near Odessa. It's being developed through a joint venture with investment manager BlackRock and is designed to capture up to 500,000 metric tons of CO2 per year. The U.S Environmental Protection Agency recently approved Class VI permits for the project.

DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted. Under the agreement with Palo Alto Networks and others, the carbon dioxide that underlies the credits will be stored in a below-the-surface saline aquifer and won’t be used to produce oil or gas.

“We look forward to collaborating with Palo Alto Networks and using Direct Air Capture to help advance their sustainability strategy,” Michael Avery, president and general manager of 1PointFive, said in the release. “This agreement continues to build momentum for high-integrity carbon removal while furthering DAC technology to support energy development in the United States.”

Chevron gets green light on $53 billion Hess acquisition

Mega Deal

Chevron has scored a critical ruling in Paris that has given it the go-ahead for a $53 billion acquisition of Hess and access to one of the biggest oil finds of the decade.

Chevron said Friday that it completed its acquisition of Hess shortly after the ruling from the International Chamber of Commerce in Paris. Exxon had challenged Chevron’s bid for Hess, one of three companies with access to the massive Stabroek Block oil field off the coast of Guyana.

“We disagree with the ICC panel’s interpretation but respect the arbitration and dispute resolution process,” Exxon Mobil said in a statement on Friday.

Guyana is a country of 791,000 people that is poised to become the world’s fourth-largest offshore oil producer, placing it ahead of Qatar, the United States, Mexico and Norway. It has become a major producer in recent years.

Oil giants Exxon Mobil, China’s CNOOC, and Hess squared off in a heated competition for highly lucrative oil fields in northern South America.

With Chevron getting the green light on Friday, it is now one of the major players in the Stabroek.

“We are proud of everyone at Hess for building one of the industry’s best growth portfolios including Guyana, the world’s largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer,” former Hess CEO John Hess said in a statement. “The strategic combination of Chevron and Hess creates a premier energy company positioned for the future.”

Chevron also said that on Thursday the Federal Trade Commission lifted its earlier restriction, clearing the way for John Hess to join its board of directors, subject to board approval.

Chevron announced its deal for Hess in October 2023, less than two weeks after Exxon Mobil said that it would acquire Pioneer Natural Resources for about $60 billion.

Chevron said at the time that the acquisition of Hess would add a major oil field in Guyana as well as shale properties in the Bakken Formation in North Dakota.

“Given the significant value we’ve created in the development of the Guyana resource, we believed we had a clear duty to our investors to consider our preemption rights to protect the value we created through our innovation and hard work at a time when no one knew just how successful this venture would become,” Exxon Mobil said Friday. “We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved.”

Chevron's stock rose more than 3% before the market open, while shares of Hess surged more than 7%. Exxon's stock climbed slightly.