Marubeni Signs Long-Term Deal with ExxonMobil to Import Low-Carbon Ammonia from U.S. for Japan’s Energy Transition

Japanese conglomerate Marubeni Corporation has entered into a long-term offtake agreement with ExxonMobil for the supply of approximately 250,000 tonnes per year of low-carbon ammonia. The ammonia will be sourced from ExxonMobil’s planned low-carbon hydrogen and ammonia facility in Baytown, Texas, which is set to become one of the world’s largest upon completion.

The low-carbon ammonia will primarily be supplied to the Kobe Power Plant, a wholly owned subsidiary of Kobe Steel. The facility is expected to help Japan reduce emissions from its power sector as part of its broader decarbonization goals for fiscal year 2030.

In addition to the offtake deal, Marubeni has also agreed to acquire an equity stake in ExxonMobil’s Baytown facility. The plant is projected to produce up to 1 billion cubic feet per day of virtually carbon-free hydrogen, removing approximately 98% of carbon dioxide (CO₂), and more than 1 million tonnes per year of low-carbon ammonia. A final investment decision (FID) is anticipated in 2025, subject to government policy support and regulatory approvals.

“This is another positive step forward for our landmark project,” said Barry Engle, President of ExxonMobil Low Carbon Solutions. “By using American-produced natural gas we can boost global energy supply, support Japan’s decarbonization goals and create jobs at home. Our strong relationship with Marubeni sets the stage for delivering low-carbon ammonia from the U.S. to Japan for years to come.”

Yoshiaki Yokota, Senior Managing Executive Officer at Marubeni Corporation, highlighted the significance of the partnership, saying, “Marubeni will take this first step together with ExxonMobil in the aim of establishing a global low-carbon ammonia supply chain for Japan. Additionally, we aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia.”

Kobe Power Plant aims to co-fire low-carbon ammonia with existing fuels by 2030, reducing CO₂ emissions. Through this agreement, Marubeni intends to support decarbonization efforts not only in Japan’s power sector but also in hard-to-abate sectors such as steel manufacturing, chemicals, and transportation.

This initiative marks a key step in aligning Japan’s energy needs with global low-carbon supply chains and reinforces Marubeni’s commitment to expanding its role in clean energy projects across Japan and Southeast Asia.