In Texas, Reuters reported that Exxon Mobil has paused plans to build what would be one of the world’s largest hydrogen production facilities due to weak customer demand.
The confirmation was made by the company’s CEO Darren Woods in an interview with Reuters.
The suspension of the project, which had already experienced delays, reflects a wider slowdown in efforts by traditional oil and gas firms to transition to cleaner energy sources as many of the initiatives struggle to turn a profit, the report stated.
Exxon had announced plans in 2022 to build the plant at its refining and chemical complex in Baytown, Texas, with a goal of producing 1 billion cubic feet per day of so-called blue hydrogen, a clean fuel that produces water when burned.