This is a major development towards clean energy breakthrough as Marubeni Corporation and Exxon Mobil have signed a long-term offtake agreement of about 250000 tonnes of low-carbon ammonia per annum. As is attested by the present deal, the production and transportation of low-emission energy from the US Gulf Coast to Asia strongly contributes to the development of a durable transpacific supply chain.
Key Takeaways
Marubeni and ExxonMobil’s deal marks major progress in global low-carbon ammonia supply.
The Baytown, Texas plant will be the world’s largest low-carbon hydrogen and ammonia facility.
The agreement strengthens U.S.–Japan clean energy ties and sets an example for Europe and the UK.
Low-carbon ammonia is becoming vital for decarbonizing heavy industries worldwide.
A New Era For Low-Carbon Ammonia Production And Export
The source of ammonia will be from ExxonMobil’s Baytown, Texas (located in the United States), a facility that will be the largest low-carbon hydrogen and ammonia production in the world. The project will produce an additional billion cubic feet of low-carbon hydrogen daily and also more than 1 million tonnes of low-carbon ammonia annually by using carbon capture technology to isolate and deposit about 98% of CO₂ emissions.
This contract for Marubeni is not just a supplies contract, it’s a guidebook for a forward-looking energy ecosystem. The Japanese conglomerate intends to supply the low-carbon ammonia to Kobe Power Plant, which is a wholly-owned subsidiary of Kobe Steel, and the future will see it spreading its decarbonization initiatives across Japan and Southeast Asia.
“This is a crucial milestone in accelerating our global low-carbon ammonia strategy,” said Yoshiaki Yokota, Senior Managing Executive Officer at Marubeni. “Our collaboration with ExxonMobil not only supports Japan’s 2030 emissions goals but also lays the foundation for a scalable international ammonia market.”
Driving Decarbonization Across Key Sectors
The deal supports Japan’s ambitious targets to co-fire low-carbon ammonia with traditional fuels at power plants by 2030—slashing carbon emissions without disrupting energy reliability. This partnership also opens doors to decarbonize hard-to-abate sectors such as:
Steel production
Chemical manufacturing
Heavy transportation
For the U.S., this agreement reflects a growing opportunity to export clean hydrogen derivatives like ammonia to global markets, creating jobs, strengthening industrial ties with Japan, and solidifying its role as a leader in next-generation energy technologies.
“By leveraging American-produced natural gas and carbon capture, we’re supporting global decarbonization while fueling the U.S. economy,” said Barry Engle, President of ExxonMobil Low Carbon Solutions.
Why This Matters For The US, UK, And Europe
While the initial export focus is on Japan, the implications of this agreement ripple across the U.S., UK, and European energy landscapes:
U.S. Impact: Solidifies America’s position as a global hub for low-carbon hydrogen and ammonia production.
UK & EU Relevance: Europe is exploring similar strategies to reduce emissions across energy-intensive industries. The Marubeni-ExxonMobil model could serve as a scalable template for low-carbon ammonia imports to help meet EU 2030 climate targets.
Geopolitical Significance: Strengthens U.S.-Japan energy diplomacy, offering a cleaner alternative to fossil fuel imports in a world grappling with energy security and climate concerns.
Marubeni’s Long-Term Vision
Marubeni is not stopping at supply agreements. The company has agreed to take an equity stake in ExxonMobil’s Baytown facility, reinforcing its commitment to long-term collaboration and infrastructure co-development. This could be a strategic move to expand investment influence in the global clean ammonia market and gain early access to valuable low-emissions capacity.
ExxonMobil’s Low-Carbon Leadership
ExxonMobil continues to build out its Low Carbon Solutions portfolio, aiming to reach net-zero emissions for Scope 1 and 2 by 2050 across operated assets. With the largest CO₂ pipeline network in the U.S., ExxonMobil is uniquely positioned to scale its carbon capture, utilization, and storage (CCUS) capabilities to meet rising demand for low-emission fuels.
About The Companies
Marubeni Corporation
A major Japanese integrated trading and investment business group with operations across energy, infrastructure, mobility, and next-generation business development.
Website: https://www.marubeni.com/en