Exxon Signs Ammonia Accord, Presses Case for Hydrogen Tax Credit

Exxon Mobil Corp. pressed the case for hydrogen produced from natural gas to receive US tax credits under the Inflation Reduction Act after signing an accord to sell the low-carbon fuel to JERA Co., Japan’s biggest power provider.

JERA will consider buying 500,000 tons a year, or half the ammonia produced from Exxon’s proposed low-carbon hydrogen project in Baytown, Texas, the companies said in a statement. Hydrogen can be converted into ammonia for shipping and storage, then burned cleanly to produce electricity.

The nonbinding agreement demonstrates “significant” demand for low-carbon hydrogen and ammonia, Dan Ammann, president of Exxon ...