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10/03/2025

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LAWIN.news

ExxonMobil’s Baytown Hydrogen Project Faces Uncertainty Amid Tax Credit Changes

by Mae De Vera, LAWIN.news August 22, 2025
written by Mae De Vera, LAWIN.news August 22, 2025
The Air Liquide hydrogen plant is shown Wednesday, April 13, 2022 in La Porte. Exxon's hydrogen plant in Baytown may be facing some issues. Brett Coomer/Staff photographer
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The planned hydrogen facility by ExxonMobil in Baytown, Texas, faces an uncertain future due to recent adjustments in hydrogen tax credits introduced under the Trump administration’s “big, beautiful bill.” These legislative changes have altered the timeline for construction, now requiring projects to commence by 2028 to qualify for the 45V tax credit, a substantial shift from the original deadline of 2033. During an earnings call, Exxon CEO Darren Woods highlighted the project’s complexity, emphasizing the need for a simultaneous development of supply, demand, and regulatory frameworks.

Woods expressed concern about the broader market development necessary for transitioning the project from being government-subsidized to a market-driven enterprise. He noted that while the Baytown project could meet the 2028 construction start deadline, the feasibility of advancing without clear market pathways remains a challenge. The project’s intended output is substantial, aiming to produce around 1 billion cubic feet of low-carbon hydrogen per day, which could significantly fuel Exxon’s Baytown operations or be marketed to other entities.

The project is also pivotal in supporting Houston’s aspiration to achieve carbon neutrality by 2050, potentially reducing Exxon’s carbon emissions by 30% through hydrogen use. Furthermore, Exxon’s carbon capture and storage initiative is set to accommodate about 10 million metric tons of carbon dioxide annually, positioning it among the largest global efforts. This initiative aligns with a regional ambition to transform Houston into a carbon capture hub, targeting a cumulative storage of 100 million metric tons by 2040 across various facilities.

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Mae De Vera, LAWIN.news

Mae De Vera is a passionate advocate, creative professional, and entrepreneur. A graduate of Political Science from Saint Louis University and a law student of Arellano University, Mae is dedicated to empowering marginalized communities through outreach programs and advocacy. With a background in digital artwork, event flyer design, ESL teaching, and business management, Mae brings a versatile skill set to her endeavors. She also embraces her love for nature through farming, integrating sustainability into her life. Mae’s leadership experience as a consistent school student leader reflects her commitment to making a difference. Today, she combines her creativity, advocacy, and entrepreneurial spirit to create impactful stories and initiatives that inspire change. Disclaimer: The views and beliefs expressed by the author do not necessarily represent those of LAWIN.news, its management, editorial board, or staff.

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