Exxon Mobil says its low-carbon hydrogen, ammonia and lithium developments in the US are at risk of being delayed due to slower-than-expected demand growth, unfavorable policy changes and rising costs.
CEO Darren Woods said a final investment decision (FID) for the US major's giant blue hydrogen and blue ammonia project in Baytown, Texas, which is expected by the end of the year, could be postponed.
“It’s a little early to tell, but that’s, I think, certainly a strong possibility,” he said during the company’s second-quarter earnings call on Friday.
Woods added that Exxon has seen "mixed progress" at the ambitious Baytown development while stressing the overall complexity of the project, which will require the simultaneous development of supply, demand and supportive policy to be viable.
Progress on those fronts has not been smooth lately, particularly when it comes to fundamentals, according to Woods.
