Trammo and Exxon Mobil have signed a Heads of Agreement (HOA) to advance discussions for Trammo’s long-term offtake of 300,000 to 500,000 tonnes of low-carbon ammonia per year from ExxonMobil’s Baytown, Texas facility. The facility is expected to produce virtually carbon-free hydrogen—with approximately 98% of CO₂ removed—and will use this low-carbon hydrogen to make low-carbon ammonia.

Trammo, a leading international physical commodity trader, will leverage its market and logistical expertise to deliver and sell in Europe and worldwide this unique low-carbon ammonia for use as fertilizer feedstock and for other key industrial applications.

The facility is expected to be the world’s largest of its kind, capable of producing up to 1 billion cubic feet (bcf) daily of “blue” hydrogen—an industry term for hydrogen produced from natural gas and supported by carbon capture and storage—and more than 1 million tons of low-carbon ammonia annually. The carbon capture infrastructure for this project would have the capacity to transport and store up to 10 million metric tons of CO₂ per year, more than doubling ExxonMobil’s current capacity.

A final investment decision by ExxonMobil is expected in 2025 with anticipated startup in 2029, subject to supportive government policy, regulatory permitting, and market conditions.

Trammo is a market leader in the seaborne ammonia trade with a unique international footprint. Trammo owns and has access to ammonia terminal assets. Trammo’s active fleet of fully refrigerated gas carriers is one of the largest in the world, with 12 to 15 carriers ranging in size from 25,000 to 45,000 cbm.