TOKYO (Reuters) – Japanese buying and selling home Mitsubishi stated on Friday it has reached a preliminary settlement to purchase a stake in and offtake low-carbon ammonia from ExxonMobil (NYSE:)’s hydrogen facility in Texas.

A part of its decarbonisation drive, Japan is aiming to extend utilization of hydrogen and its by-product, ammonia, for co-firing at energy crops, utilization within the metal and car industries and different areas.

Mitsubishi stated that ExxonMobil’s facility was anticipated to provide as much as 1 billion cubic toes (bcf) per day of hydrogen, which might have about 98% of CO2 eliminated, and greater than 1 million tons of low-carbon ammonia per yr.

The ultimate choice was anticipated subsequent yr with startup of the power in 2029, Mitsubishi stated, with out disclosing the dimensions of the stake it was prepared to purchase or how a lot ammonia to offtake.

Mitsubishi deliberate to accomplice with Japanese oil refiner Idemitsu Kosan for joint fairness and ammonia offtake which was anticipated for use in Japan for energy era, course of heating and different industrial actions, it added.

Earlier this yr, Idemitsu Kosan, Mitsubishi Corp and Swiss agency Proman agreed to review a gas ammonia manufacturing undertaking in Louisiana.

Idemitsu goals to construct an ammonia import terminal utilizing the present infrastructure on the Tokuyama plant in western Japan and provide greater than 1 million tons of low-carbon ammonia by 2030 to industrial patrons, together with within the chemical substances and metal sectors.

Mitsubishi, in flip, is contemplating turning part of its liquefied petroleum fuel (LPG) terminal in Namikata in western Japan into an ammonia terminal and provide low-carbon ammonia for varied industrial functions.

“We’re excited to be intently collaborating with ExxonMobil to develop low-carbon hydrogen and ammonia provide chains that may bridge the US and Japan,” Masaru Saito, environmental vitality group chief government with Mitsubishi, stated within the assertion.