Fertilizer companies race to U.S. Gulf to make low-emissions ammonia
(Reuters) - Fertilizer companies are leading the race to build plants along the U.S. Gulf of Mexico to produce ammonia, a compound mainly used for fertilizer, while capturing most of the carbon dioxide emissions. The low-emissions ammonia is known as blue ammonia. The companies have focused on the U.S. Gulf Coast to take advantage of Inflation Reduction Act subsidies and the existing export infrastructure.
OCI: Dutch fertilizer producer has the early lead, with construction underway of its 1.1 million metric ton per year plant at Beaumont, Texas.
Status: It is scheduled to open in 2025.
CF Industries: The world's largest ammonia producer has committed $285 million to enable existing plants in Louisiana and Mississippi to process carbon before transporting it for sequestration.
It, along with its partner Mitsui, is considering construction of a new blue ammonia plant in Louisiana.
Status: Final investment decision on the new plant expected in 2023. Production would start in 2027.
Yara: The Norwegian fertilizer maker aims to invest up to $2.9 billion in a blue ammonia plant in Ingleside, Texas together with Canada's Enbridge.
The facility would capture about 95% of the carbon emissions in what would become Yara's biggest production site with a production capacity of 1.2-1.4 metric tons per year and full offtake for Yara.
Status: Final investment decision pending, production would start around 2027-28.
Yara is also looking into developing and building a second site of similar capacity with Germany's BASF.
Status: Feasibility study on the BASF site expected by end-2023. The company has earlier said production would start for its second North American blue ammonia project in 2028-2029.
Nutrien: Canadian producer is evaluating a site at Geismar, Louisiana, where it already has a facility, to produce 1.2 million metric tons of blue ammonia. It would partner with Denbury for carbon sequestration.
Mitsubishi has signed a non-binding agreement to buy up to 40% of the plant's production.
Status: Final investment decision expected in 2023. Production would start by 2027.
Other companies planning low-emissions ammonia projects in the U.S. Gulf: LOTTE Chemical/Mitsubishi/RWE; ExxonMobil; Ascension Clean Energy; Air Products and Chemicals; St. Charles Clean Fuels
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