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

project uncertainty

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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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

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

dream team

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.”

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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These 5 trailblazing Houston startups are leading the energy transition

meet the finalists

Houston is home to a growing number of startups reshaping what it means to be called the "Energy Capital of the World."

As part of the 2026 Houston Innovation Awards, our Energy Transition Business category honors those innovative startups that are providing solutions within renewables, climatetech, clean energy, alternative materials, circular economy and more.

Five clean energy startups have been named finalists for the 2026 award. The finalists, selected by our esteemed panel of judges, range from a lower-emission steel producer to a diagnostics platform developer working to support batteries used in data centers.

Read more about these innovative businesses, their initiatives, and their inspirational founders below. The 2026 winners will be announced on InnovationMap.com in mid-November.

Capwell Services

Methane capture company Capwell Services works to eliminate vented oil and gas emissions economically for operators. According to the company, methane emissions are vented from most oil and gas facilities due to safety protocols, and operators are not able to capture the gas cost-effectively, leading operators to emit more than 14 million metric tons of methane per year in the U.S. and Canada. Founded in 2022, Capwell specializes in low and intermittent flow vents for methane capture.

The company began as a University of Pennsylvania senior design project led by CEO Andrew Lane. It has since participated in programs with Greentown Labs, the Rice Clean Energy Accelerator and the Creative Destruction Lab Energy Cohort at Texas A&M University. The company moved to Houston in 2023 and raised a pre-seed round. It deployed two commercial units this year, according to its application.

FlowCellutions

Energytech startup FlowCellutions is developing a chemistry-agnostic diagnostics platform for flow and metal-air batteries supporting data centers and critical infrastructure. The platform is designed to help reduce operating costs, prevent failures and costly downtime, and extend battery lifetime from approximately seven years to more than 30 years. It has deployed four paid pilots and plans to take insights from the programs to develop its next-gen sensor platform technology.

CEO Becca Segel founded the company in 2022. It is a member of Greentown Labs, and Segel was a 2025 Activate Fellow. The company has raised over $2 million in non-dilutive funding and received a $1.5 million NSF SBIR Fast-Track award earlier this year.

Hertha Metals

Hertha Metals produces lower-cost, lower-emission steel and high-purity iron. The company has developed a single-step process that uses natural gas as a direct reductant instead of metallurgical coal, which cuts production costs by more than 25 percent and emissions by up to 50 percent, according to the company. The same process produces high-purity iron needed for high-purity steels and rare earth magnets. The company says it aims to "re-industrialize America’s production of critical materials."

Hertha Metals was founded by CEO Laureen Meroueh in 2022 and emerged from stealth last year with more than $17 million in venture capital funding. The company closed a $133.65 million Series A this month and also broke ground on its $100M high-purity iron factory known as Chalyx in Conroe.

Mars Materials

Clean chemical manufacturing business Mars Materials is working to convert captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. The company develops and produces its drop-in chemical products in Houston and uses an in-licensed process for the National Renewable Energy Lab to produce acrylonitrile, which is used to produce plastics, synthetic fibers, and rubbers.

Founded in 2019 by CEO Aaron Fitzgerald, CTO Kristian Gubsch, and vice president of operations Trey Sheridan, the company has secured over $7.2M in financing and is backed by Bill Gates’ Breakthrough Energy, Shell, Black & Veatch, and other organizations. It won in the Minority-founded Business Category in last year's Houston Innovation Awards.

Solidec

Chemical manufacturing company Solidec has developed autonomous generators that extract molecules from water and air and convert them into pure chemicals and fuels that are free of carbon emissions on-site, eliminating the need for transport, storage, and permitting. The company was founded around innovations developed by Rice University associate professor Haotian Wang.

The company was selected for the Chevron Technology Ventures’ Catalyst Program, Greentown Labs, NSF I-Corps and was part of the first cohort of the Activate Houston program. It won first place at the 2024 startup pitch competition at CERAWeek. Solidec was founded in 2023 by Wang, who serves as an advisor, CEO Ryan DuChanois, and CTO Yang Xia. It closed a $2.5 million seed round in 2025.

Texas ranks below average on most energy-efficient states report

room to improve

Despite being home to a booming energy sector, Texas ranks below average on a new list of the country’s most and least energy-efficient states.

The list, compiled by personal finance website WalletHub, puts Texas at No. 34 for energy efficiency. It ranked 27th for energy efficiency of homes and 41st for energy efficiency of cars. Texas improved by one spot on the 2026 report, after coming in at No. 35 last year and No. 36 in 2024.

California took the top spot on the list this year, beating out Vermont, which claimed the No. 1 rank in 2025. South Carolina ranked No. 48. Due to data limitations, Alaska and Hawaii were excluded from WalletHub’s analysis.

In the WalletHub study, California had the lowest residential energy consumption per capita and the third-highest efficiency for home energy. At the bottom of the list, South Carolina ranked 48th for energy efficiency of homes and 35th for energy efficiency of cars.

Here’s who joined California in the top 5:

  • No. 2 Vermont
  • No. 3 New York
  • No. 4 Washington
  • No. 5 Massachusetts

WalletHub notes the average U.S. family spends at least $2,000 per year on utilities, and the average consumer spent $2,411 on gasoline in 2024.

The U.S. Department of Energy estimates that adopting energy-efficient measures in the home could reduce a family’s utility costs by as much as 25 percent. As for gas, the agency found a more fuel-efficient vehicle could save the average driver more than $1,000 per year.

“Energy efficiency doesn’t just help save the planet — it also helps save you money by lowering the amount of electricity, gas, oil, or other types of energy you need to consume,” WalletHub analyst Chip Lupo says.

“While there are some steps you can take to become more energy-efficient on your own, living in the right area can give you a big boost,” he adds. “For example, certain states have much better public transportation systems that minimize your need to drive, at least in big cities. Some places also have better-constructed buildings that retain heat better during the winter or stay cooler during the summer.”

WalletHub compiled the listing using data from the U.S. Census Bureau, National Climatic Data Center, U.S. Energy Information Administration, and Federal Highway Administration.

Utility Global's H2Gen named one of the best inventions of 2026

Best of 2026

One of the year's most buzzworthy innovations comes from a Houston-based leader in the energy transition. Utility Global's H2Gen recently made Time magazine’s list of the 300 best inventions of 2026.

The H2Gen is an innovative system that produces low-cost clean hydrogen from water and industrial off-gases. The company says the process doesn’t require electricity, a notable claim since hydrogen production typically consumes a lot of power.

"Using a tubular electrochemical cell containing a proprietary electrolyte and water, the company can turn industrial off-gases into hydrogen at scale—no extra electricity required," writes Time. "Bonus: the process also pulls out carbon dioxide as a separate stream, where it can be captured and kept out of the atmosphere.

CEO Parker Meeks tells Time, it's “a practical pathway to decarbonize existing industrial assets."

The startup is on a roll. It has raised $100 million so far in an ongoing Series D round to offer its decarbonization technology at industrial scale around the world.

H2Gen is joined by 10 other inventions with Texas connections onTime's list, as well as one "special mention."

In North Texas, they are:

Samsung
Plano-based Samsung Electronics America pulled off a hat trick this year, with three products making Time’s list. First up is the Galaxy S26 Ultra smartphone. It packs a more powerful camera, Galaxy AI features, and pro-level content creation tools. But Time singled out its new built-in privacy display as the phone’s “biggest selling point.”

Samsung’s Bespoke AI Family Hub refrigerator also got smarter. When AI first came to the Family Hub in 2024, it could recognize some fresh foods, but you still had to log packaged items by hand, Time noted. Now, with Google Gemini built in, the fridge can identify more than 2,000 packaged foods, read handwritten labels, and warn you when food is about to expire. It then uses what’s inside to build grocery lists and suggest recipes.

And for gamers, there’s the Odyssey G8 monitor. Its 6K resolution leapfrogs the 4K standard, delivering what Samsung calls “exceptional visual clarity and detail” on a screen big enough for gaming and multitasking.

OxeFit
Plano-based OxeFit’s XS1 Peak is about the size of a treadmill but works like an entire gym. It can be set up for strength training, simulated skiing or kayaking, Pilates, or rowing. What makes it stand out is a built-in virtual spotter. According to Time, the machine “uses AI, computer vision and sensors to correct the user’s form, change resistance in the middle of a rep and reduce the weight when the user is struggling, much like a human spotter.”

EssilorLuxottica
EssilorLuxottica, the French eyewear giant whose U.S. headquarters is in Farmers Branch, makes Essilor Stellest lenses. The lenses correct nearsightedness while also slowing the eye growth that makes it worse over time. Stellest is the first and only eyeglass lens authorized by the U.S. Food and Drug Administration to control myopia, Time said. The lenses look like regular glasses but contain 1,021 tiny lenslets. In a U.S. trial of kids ages 6-12, myopia progression slowed by an average of 71 percent over two years compared with standard lenses.

Helpany
Helpany, a startup based in Phoenix that manufactures its devices in DFW, makes Paul, a ceiling-mounted gadget that uses radar and AI to spot subtle changes in how residents move and flag those at higher risk of falling. Helpany says the technology can cut falls by as much as 72 percent.

Aurora Innovation
Aurora, based in Pittsburgh with a corporate and operations hub in Coppell, rolled out its second-generation Driver 2 system in July. By September, Driver 2 trucks had logged more than 500,000 driverless miles without a single at-fault crash, Time reported, and the company expects 200 of them on the road by the end of 2026.

Colossal Biosciences
Dallas-based Colossal Biosciences built an artificial egg by placing an ultra-thin, transparent silicone membrane inside a rigid 3D-printed cup, letting scientists watch the embryo develop. Twenty-six chickens have already been hatched.

In Austin, they are:
Cedar Park-based Hyliion landed on Time’s list with its Karno Power Module, a modular generator designed to produce power wherever it’s needed. The Karno represents a big pivot for the company. Hyliion got its start building electrified powertrains for 18-wheelers before shifting into power generation after acquiring the Karno generator technology from GE Aerospace. Founded in Pittsburgh in 2015, the company relocated to Cedar Park in 2018.

The other Austin-associated honoree is Moment Energy. As more electric vehicles hit the road, a growing number of their batteries are nearing retirement, while demand for power keeps climbing. Moment Energy found a way to tackle both problems at once. The company’s Megafactory 1, which opened in Vancouver, Canada, in June, turns old EV batteries into modular energy storage systems for hospitals, factories, data centers, and other big power users. “Our goal is to make sure these batteries don’t end up in landfills,” founder Edward Chiang told Time.

In the “Special Mentions” category, Austin-based Renzoe Box gained notice for its refillable custom makeup palette for on-the-go people. Licensed architect René Graham designed the box. She graduated from Houston's Rice University, and was born and raised in Dallas.

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A version of this article first appeared on CultureMap.com.

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