When you think of ExxonMobil, you probably picture oil—a lot of it. But guess what? Big Oil is starting to pay attention to the green stuff too. And no, we’re not talking about kale smoothies or organic avocados. We’re talking about hydrogen and ammonia, baby—the low-carbon fuels of the future. And now, Mitsubishi Corp. is getting into bed with Exxon to cash in on the clean energy trend. 

(Source: Reuters) 

"Wait, Mitsubishi in green energy?" Shocking, I know… but let’s break it down shall we?

In short, Mitsubishi is buying into ExxonMobil’s planned massive low-carbon hydrogen and ammonia facility in Baytown, Texas. Think "Texas-size" but make it green. The facility aims to produce up to 1 billion cubic feet of low-carbon hydrogen per day and over 1 million metric tons of low-carbon ammonia each year. That’s a lot of clean fuel.

(Source: Giphy) 

But what exactly are Mitsubishi and Exxon doing? Under the agreement, Mitsubishi gets a stake in the project and, more importantly, exclusive rights to sell the ammonia back home in Japan. Financials weren’t disclosed, but let’s just assume it's a big number. Because, you know, companies don’t jump into billion-dollar projects for fun.

You see, Ammonia is basically hydrogen’s cooler, more stable cousin. It’s easier to transport and store, which makes it a hot commodity if you’re serious about cutting emissions in hard-to-decarbonize sectors like steel production and shipping. Plus, Japan is all in on this stuff. They’ve got big plans to decarbonize industries that usually have the carbon footprint of a small country.

(Source: Barrons) 

Which is exactly why Mitsubishi wants to use this ammonia to power Japanese utilities and industrial companies. In fact, according to reports they are even planning to convert part of a liquefied petroleum gas (LPG) terminal into an ammonia import hub. By 2030, they’re aiming to handle 1 million tons of ammonia annually at this site. Talk about future-proofing.

(Source: Giphy) 

Now obviously, ExxonMobil is best known for its oil and gas dominance, but even they can read the writing on the wall. Governments around the world are tightening climate policies like my dad adjusting the thermostat when the AC bill is too high. So, oil giants like Exxon are pivoting toward things like hydrogen and ammonia, which could be the fuels that keep the lights on—without torching the planet.

But, but, but… Exxon’s not just dipping a toe in. This Baytown facility is designed to capture a whopping 98% of the carbon emissions from hydrogen production. That’s a big deal because, while hydrogen itself is carbon-free when burned, making it usually involves a lot of greenhouse gas emissions. Exxon is essentially saying, “We’ll take that carbon and shove it somewhere it won’t hurt anyone—like, into the ground.”

(Source: Exxon Mobil) 

Keep in mind, this isn’t just some corporate PR stunt either. The Baytown project is a calculated move to corner the low-carbon hydrogen and ammonia markets before they really take off. And make no mistake, they will take off. Hydrogen is one of the few options that could help industries like steel, transportation, and chemicals get their emissions under control.

But there’s a catch—this project still needs final investment approvals and some serious policy backing. Exxon is betting big that governments around the world (especially the U.S. and Japan) will keep pushing for cleaner energy solutions. The plan is to have this monster facility up and running by 2029, pending permits and political will.

(Source: Houston Public Media) 

With that said though, let’s zoom out for a second. Exxon isn’t the only oil major trying to clean up its act. Last year, Chevron teamed up with Magnum Development to build a giant carbon capture network in the U.S - with you guessed it, Mitsubishi in the mix. They also bought a stake in Gevo, a renewable natural gas producer. Trust me, when Big Oil starts throwing around words like “renewable” and “carbon capture,” you know something’s up.

(Source: Chevron)

But it’s not that Exxon and Chevron are going to stop drilling for oil anytime soon (because, let’s face it, the black gold is way too lucrative for the time being - sorry tree huggers), but they’re definitely hedging their bets. They know that if they want to stay relevant in the long term, they need to diversify—and fast.

(Source: Giphy) 

Hydrogen has been called the “fuel of the future” for decades, but now it’s starting to live up to the hype. It’s seen as a crucial part of the clean energy transition, especially for industries that can’t easily switch to renewable power. But scaling up hydrogen production and distribution is still a logistical nightmare. It’s expensive, and the infrastructure isn’t quite there yet.

(Source: CRU) 

That’s why partnerships like the one between Exxon and Mitsubishi are so important. They’re setting the stage for what could be a massive industry shift. If this project succeeds, it could pave the way for more large-scale hydrogen and ammonia facilities, not just in the U.S. but around the world.

So as we can see, it makes sense as to why Mitsubishi and ExxonMobil are making a big bet on low-carbon hydrogen and ammonia, while doing it in true Texas style—go big or go home. 

(Source: Giphy) 

If it works, they’ll have a head start in a market that’s poised to explode as countries scramble to hit net-zero emissions targets. If it fails? Well, at least they can say they tried. But given the momentum behind hydrogen and the pressure to decarbonize, this might just be the golden ticket they’ve been waiting for.

(Source: Giphy) 

In the meantime, we’ll just be over here, quietly watching ExxonMobil and Mitsubishi save the planet (maybe)... while still making a ton of money, in the process. 

As always, do what you will with this information, but regardless if you decide to YOLO off this major catalyst, or you’re just along for the ride… stay safe and stay frosty, friends! Until next time… 

P.S. Our Stocks.News premium members just came off a big +96% banger yesterday! The best part? It still has room to run. Click here immediately for the details.

Stocks.News holds positions in Exxon Mobil as mentioned in the article.