ExxonMobil and Trammo sign HOA for low-carbon ammonia offtake
- ExxonMobil plans to supply 300,000 metric tpy–500,000 metric tpy of low-carbon ammonia on a long-term basis to Trammo
- Agreement with Trammo marks progress toward bringing low-carbon ammonia supply to the European market
- Project will help lower emissions and supply essential raw material products
Trammo Inc. and ExxonMobil Corp. have signed a heads of agreement (HOA) to advance discussions for Trammo’s long-term offtake of 300,000 metric tpy–500,000 metric tpy of low-carbon ammonia from ExxonMobil’s Baytown, Texas facility.
The facility is expected to produce virtually carbon-free hydrogen (H2)—with approximately 98% of carbon dioxide (CO2) removed and will use this low-carbon H2 to make low-carbon ammonia. Trammo, a leading international physical commodity trader, will leverage its market and logistical expertise to deliver and sell in Europe and worldwide this unique low-carbon ammonia for use as fertilizer feedstock and for other key industrial applications.
The facility is expected to be the world’s largest of its kind, capable of producing up to 1 Bft3d of low-carbon H2 and more than 1 MMtpy of low-carbon ammonia. A final investment decision (FID) by ExxonMobil is expected in 2025 with anticipated startup in 2029, subject to supportive government policy, regulatory permitting and market conditions.
“Our Baytown project continues to make significant strides, attracting more and more customer interest,” said Barry Engle, president of ExxonMobil Low Carbon Solutions. “We’re looking forward to working with Trammo on this first-of-its-kind project which would be a win for America’s Gulf Coast, creating jobs and enhancing U.S. energy exports.”
Trammo SAS President Christophe Savi said: “Trammo is delighted to partner with ExxonMobil in the Baytown project and to sign this HOA. Both companies have a common interest in developing clean and decarbonized solutions for consumers worldwide, including the European market, and this partnership furthers Trammo’s goal of making available in the market significant volumes of low-carbon ammonia by 2030.”
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