Mitsubishi Corporation and ExxonMobil Sign Agreement to Advance the World's Largest Low-Carbon Hydrogen Project

The facility is expected to be the world’s largest of its kind upon startup. The parties entered into a Project Framework Agreement to govern Mitsubishi’s participation in the project and provide a structure to lead to a positive final investment decision targeted for the summer of 2025. When completed, the project is expected to produce virtually carbon-free hydrogen with approximately 98% of carbon dioxide (CO2) removed. That low carbon hydrogen will be sold to hydrogen consumers in the US Gulf Coast region of the United States and will also be used on site in Baytown to product low-carbon ammonia that will be sold internationally to customers in Asia and Europe. Mitsubishi plans to offtake a significant portion of the low carbon ammonia produced at the project and to export that ammonia to Japan for further distribution to Japanese customers for use in power generation.

The Vinson & Elkins teams was led by partners Shay Kuperman and Alan Alexander, with assistance from partners John Michael and Chris Strong, senior associate Jacob Panagi and associates Vestita Zumot and Laura Byrd. Other key team members included partner Nettie Downs and counsel Rajesh Patel; partner Todd Way and associate Jeff Slusher; partner Sean Becker and associate Jordan Peck; partner Hill Wellford and counsel Evan Miller; counsel Ken Adler and senior associate Callie Poorman; partners Matt Dobbins and Suzanne Clevenger, senior associate Andrew DeVore and associate Ryan Hoeffner; partners Jim Loftis, Randall Johnston and associate Kylie Terry.