Exxon to use Honeywell carbon capture tech at hydrogen facility

NEW YORK, Feb 15 (Reuters) - Exxon Mobil Corp (XOM.N) will use technology from Honeywell International Inc (HON.O) to capture carbon dioxide at a proposed hydrogen production facility in Texas, Honeywell said.

Honeywell said the technology would enable Exxon to capture about 7 million tons of carbon dioxide (CO2) per year, equivalent to emissions from 1.5 million automobiles for one year, Honeywell said.

The facility at Baytown, Texas, facility, is expected to start operating by 2028.

The value of the agreement was not disclosed. Honeywell declined to discuss terms.

The Baytown hydrogen plant is part of Exxon's drive to make money from helping other companies decarbonize operations. The process of making hydrogen will also produce CO2, which Exxon will sequester and permanently store.

The project "shows our commitment to supporting customers in their decarbonization efforts," said Dan Ammann, president of ExxonMobil Low Carbon Solutions.

Honeywell said its CO2 fractionation and hydrogen purification technology lowered the cost of capturing, transporting and storing carbon dioxide. It used smaller equipment and had lower expenses than other technologies, the company said.

"Our ready-now carbon capture technology works to decarbonize production processes and is effective because it can allow for significant emissions reduction that can play a major role in the energy transition," said Barry Glickman, a Honeywell vice president.

Exxon expects its Baytown facility in Texas to produce 1 billion cubic feet (28 million cubic meters) of hydrogen per day. The fuel, which produces no emissions when burnt, is targeted at heavy industries trying to switch from fossil to renewable fuels.

Reporting by Stephanie Kelly; Editing by Bradley Perrett

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