DUBAI, Sept 4 (Reuters) - Abu Dhabi state oil giant

ADNOC will acquire a 35% stake in a planned Exxon Mobil ( XOM )

large-scale hydrogen plant in Texas, the companies said on

Wednesday.

The production facility aims to produce up to 1 billion

cubic feet per day of low-carbon hydrogen, with around 98% of

carbon dioxide removed, they said in a statement, without

disclosing a value for the investment.

The project is part of Exxon's efforts to create a new

business to make money out of cutting greenhouse gas emissions

by other companies looking to decarbonise their own operations.

ADNOC Executive Vice President of Low Carbon Solutions and

Business Development Michele Fiorentino told Reuters that the

output will be used to supply "either the refining system of

Exxon Mobil ( XOM ) or third party buyers of blue hydrogen connected to

the pipeline network in the Gulf coast".

Alternatively, Fiorentino said, it could produce blue

ammonia, which will be used to supply either Northeast Asia or

Europe, which are the two main demand centres.

A final investment decision on the project is expected

around mid-2025 or in the second half of next year, he said.

First production is expected in 2029 and will likely ramp up

to full capacity within 12 months, subject to demand, he added.

ADNOC is "reasonably confident the demand will be there,"

Fiorentino said, adding that the scale of the project will make

its hydrogen among the most cost-competitive.

He declined to disclose the project's costs, but indicated

it would be in the billions of dollars.

A second train of the same size could be added "if it made

sense at that point in time," Fiorentino added.