Abu Dhabi National Oil Co. (ADNOC) will acquire a 35% equity stake in Exxon Mobil Corp.’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, the U.S.-based energy giant said Sept. 4.

The move came as companies across the world take steps to help decarbonize sectors with high greenhouse gas emissions while meeting growing demand for lower-carbon fuels.

“This is a world-scale project in a new global energy value chain,” said Exxon Mobil CEO Darren Woods. “Bringing on the right partners is key to accelerating market development, and we’re pleased to add ADNOC’s proven experience and global market insights to our Baytown facility.”

The facility is expected to produce up to 1 Bcf of hydrogen daily and more than 1 million tons of low-carbon ammonia per year, if it receives required regulatory permits. The facility, which Exxon said is also contingent on supportive government policy, will also capture about 98% of the associated CO2 emissions.

“This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy,” said Sultan Ahmed Al Jaber, managing director and group CEO for ADNOC.

A final investment decision on the facility is expected in 2025, a year later than previously expected. Anticipated startup is in 2029, Exxon said.

In June, Exxon Mobil said it reached an agreement with Air Liquide, enabling the transport of hydrogen through the industrial gases company’s existing pipeline network. Air Liquide also plans to build and operate four large modular air separation units for the facility. The units will supply 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen daily to the facility.

Nitrogen is combined with hydrogen to produce ammonia, which is a key ingredient in fertilizer and other products.

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