ExxonMobil's Baytown Hydrogen Project Paused Amid Demand and Cost Issues
The Worley Baytown hydrogen facility is on hold indefinitely due to low customer demand and high production costs. This $7 billion project, potentially the largest of its kind globally, is contingent upon a final investment decision by ExxonMobil, which is expected in 2025.
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The proposed Worley Baytown hydrogen and ammonia facility in Texas, designed for a capacity of 1 billion cubic feet of hydrogen daily and 1 million tonnes of ammonia annually, is paused indefinitely as of November 2025. This $7 billion project remains conditional on a final investment decision from ExxonMobil, which has been delayed due to weak demand and rising costs.
ADNOC holds a 35% equity stake, while Air Liquide is involved in infrastructure. The project’s future could hinge on supportive government policies and regulatory approvals. The situation reflects broader challenges in the blue hydrogen sector, contrasting with ongoing capital investments in Texas.
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