Hydrogen producer Linde and Exxon Mobil Corp. have signed a long-term agreement for the offtake of CO2 associated with Linde’s new clean hydrogen production facility being constructed in Beaumont, Texas, the companies said on April 4.

As part of the agreement, Exxon Mobil will transport and permanently store up to 2.2 million metric tons of CO2 annually—equivalent to the emissions from nearly 500,000 cars per year—from Linde’s hydrogen production facility, according to a news release.

The agreement comes as companies continue efforts to reduce emissions and use more low-carbon energy.

“Working with Exxon Mobil as the carbon dioxide off-taker at our Beaumont project supports Linde’s strategy to decarbonize customer processes while safely and reliably supplying low-carbon hydrogen at scale,” Dan Yankowski, senior vice president for Linde’s Americas operations.

Expected to begin operations in 2025, Linde’s new Beaumont facility will supply hydrogen and nitrogen for OCI’s new blue ammonia plant and supply hydrogen to other off-takers.

Speaking to analysts April 4, Dan Ammann, president of Exxon Mobil Low Carbon Solutions, called the pact “another landmark commercial offtake agreement.”

“It’s not hard to imagine us leveraging this for future potential activity at our nearby Beaumont site,” Ammann said, “and obviously we’ll be welcoming other third-party emitters to join as well.”

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