Yara, Enbridge To Develop $2.6 Billion Blue Ammonia Project In Texas
Norwegian sustainable solutions provider Yara Clean Ammonia and North American energy firm Enbridge Inc. have signed a ‘letter of intent’ to jointly develop and construct a world scale low-carbon blue ammonia production facility as equal partners. The proposed facility, which includes autothermal reforming with carbon capture, will be located at the Enbridge Ingleside Energy Center (EIEC) near Corpus Christi, Texas. Yara Clean Ammonia is a Yara International ASA company.
Enbridge said that once operational, the production facility will supply low-carbon ammonia globally, with an expected capacity of 1.2–1.4 million tons per annum. Approximately 95 percent of the carbon dioxide (CO2) generated from the production process is anticipated to be captured and transported to nearby permanent geologic storage. The total project investment is expected to be in the range of $2.6 to 2.9 billion. Enbridge said that the production may start in 2027/2028.
Enbridge and Yara will utilize their complementary strengths to develop and execute the project. Yara’s experience in ammonia development, production, operations and distribution, combined with large-scale infrastructure development expertise and world-class EIEC deep water docks and export platform of Enbridge will be critical to advancing the project from development through to commercial operation.
Yara is world’s largest ammonia distributor and is expected to contract full offtake from the facility, which further enhances the strategic value and commercial viability of the project.
The Texas Eastern Transmission Pipeline of Enbridge is expected to provide the transportation service for feed gas. Along with Oxy Low Carbon Ventures, its advancing a nearby CO2 sequestration hub which is a potential destination for the project’s captured CO2.
The construction of any facilities will be subject to receipt of all necessary regulatory approvals.
Colin Gruending, Enbridge Executive Vice President and President, Liquids Pipelines, said, “EIEC is well positioned to become the most sustainable export terminal in North America through low-carbon fuel production, carbon capture and solar self-power.”
President of Yara Clean Ammonia Magnus Krogh Ankarstrand said that the project will significantly contribute to their strategy of decarbonizing agriculture as well as serving new clean ammonia segments such as shipping fuel, power production and ammonia as a hydrogen carrier.
The US Hydrogen/Ammonia Trajectory
As America dashes towards net-zero target, The Biden administration launched a $7 billion funding program last year to create regional clean hydrogen hubs across the country that will be funded through Infrastructure Reduction Act.
Ammonia is the second largest captive market for hydrogen in the US and an analysis from the Argonne National Laboratory estimates that about 10 per cent of the national production could be consumed by green ammonia plants by 2050, helping decarbonisation of domestic fertiliser and chemical manufacturing.
