Letter from London: Baytown blues

US oil major ExxonMobil looks unlikely to advance its Baytown blue hydrogen project in Texas in the near term, reflecting the new pragmatism now guiding the energy transition

ExxonMobil has dropped its strongest hint to date that its Baytown blue hydrogen project in Texas is unlikely to be granted FID in the near term. The world’s largest project of its type is likely to be shelved for the time being, but not terminated, judging by comments by the US oil major’s CEO, Darren Woods, at the Energy Intelligence Forum 2025 in London in mid-October. Woods’ rationale for pausing Baytown is straightforward: He does not see enough demand for the product at current prices. “We have concerns about whether to go forward in the context of whether a market will really develop,” he told the forum. “Despite the rhetoric, there are very few companies out there willing to pay a pr