A Bold Transpacific Alliance: ExxonMobil and Marubeni Power a Cleaner Future with Low-Carbon Ammonia

A New Energy Partnership Anchored in Innovation

In a move that underscores the growing momentum behind hydrogen and ammonia as next-generation fuels, ExxonMobil and Marubeni Corporation have signed a long-term agreement to supply 250,000 tonnes of low-carbon ammonia annually. This offtake deal marks a landmark partnership between two global energy leaders, with the ammonia set to be produced at ExxonMobil’s planned low-carbon hydrogen and ammonia facility in Baytown, Texas.

The facility, expected to be the largest of its kind in the world, will use American-produced natural gas to generate virtually carbon-free hydrogen, capturing and permanently storing about 98% of the associated CO2 emissions. In addition to the supply agreement, Marubeni is also taking an equity stake in the project—signaling not just commercial interest but strategic alignment.

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Laying the Groundwork for a Global Low-Carbon Supply Chain

This initiative isn’t just about ammonia—it’s about transformation. The Baytown facility will produce over 1 million tons of low-carbon ammonia and up to 1 billion cubic feet of hydrogen daily, bringing scalability and reliability to the forefront of clean fuel production.

For Japan, this deal is timely. Marubeni plans to supply the low-carbon ammonia to the Kobe Power Plant, a wholly owned subsidiary of Kobe Steel, where the fuel will be co-fired with existing power sources. This shift is expected to significantly reduce CO2 emissions by Japan’s fiscal year 2030, and potentially set a precedent for other industrial applications.

Barry Engle, President of ExxonMobil Low Carbon Solutions, shared, “This is another positive step forward for our landmark project. By using American-produced natural gas we can boost global energy supply, support Japan’s decarbonization goals and create jobs at home.”

Driving Industry Collaboration and Energy Security

The collaboration between ExxonMobil and Marubeni sends a powerful message: long-term decarbonization requires global cooperation. By pairing ExxonMobil’s expertise in carbon capture with Marubeni’s extensive reach in power and infrastructure across Asia, the companies are well-positioned to enable a low-carbon energy bridge between the U.S. and Japan.

Marubeni’s broader ambition is to help decarbonize hard-to-abate sectors like steel manufacturing, transportation, and chemicals—industries that account for a significant chunk of global emissions. “We aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia,” said Yoshiaki Yokota, Senior Managing Executive Officer at Marubeni Corporation.

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A Step Toward Global Market Maturity

The hydrogen and ammonia space is heating up. According to the International Energy Agency, global demand for hydrogen is projected to reach 530 million metric tons per year by 2050, with ammonia emerging as a viable carrier and combustion fuel.

Ammonia has long been used in fertilizers, but its potential as a low-emission energy source is driving new interest. The advantage? It can be transported as a liquid more easily than hydrogen, and existing infrastructure—such as LNG terminals—can be repurposed for its storage and distribution.

Marubeni’s deal with ExxonMobil is one of the largest of its kind and could spark further investments across Asia and North America. Japan’s Ministry of Economy, Trade and Industry (METI) has already laid out plans to import 3 million tonnes of ammonia annually by 2030, with the number set to climb to 30 million by 2050.

Building on America’s Carbon Infrastructure

At the heart of this project is ExxonMobil’s Baytown complex, one of the most advanced energy production hubs in the U.S. The facility will plug directly into the company’s CO2 pipeline network—the largest in the country—to ensure that captured carbon is transported and stored efficiently.

The company is also no stranger to climate commitments. ExxonMobil has announced plans to achieve net-zero Scope 1 and 2 emissions from its operated assets by 2050, and its Low Carbon Solutions business continues to drive innovation in carbon capture, hydrogen, and other lower-emission technologies.

Meanwhile, U.S. policies such as the Inflation Reduction Act and 45Q tax credit expansion have strengthened the financial viability of large-scale CCS (carbon capture and storage) and clean hydrogen production. These tailwinds are expected to accelerate project timelines and attract more international investors.

What This Means for the Future

This deal isn’t just another project—it’s a signal of where the industry is headed. Governments and companies alike are recognizing that hydrogen and low carbon ammonia will play key roles in the global energy transition, especially for countries aiming to cut emissions without compromising industrial growth.

More than just a supply chain, the ExxonMobil-Marubeni partnership represents a new model for transpacific collaboration. It shows how the U.S. and Japan can align energy strategies for mutual gain—strengthening grid reliability, creating jobs, and building the framework for a global low-carbon economy.

From policy to pipelines, from steel to steam, the collaboration is planting seeds for sustainable systems that can scale. And as more sectors come under pressure to decarbonize, partnerships like this one offer a roadmap for how ambition meets action.

In short, it’s a powerful step—one that makes the future of energy feel a little more real today.