Factbox: Fertilizer companies race to US Gulf to make low-emissions ammonia

LOTTE CHEMICAL

10/07/2023 12:00

By Rod Nickel and Victoria Klesty
       July 10 (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  OCI.AS : 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  CF.N : 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  8031.T , 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  YAR.OL : 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  ENB.TO .
    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  BASFn.DE . 
        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  NTR.TO : 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  DEN.N  for carbon sequestration.
    Mitsubishi  8058.T  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
 XOM.N ; Ascension Clean Energy; Air Products and Chemicals
 APD.N ; St. Charles Clean Fuels 
    
    SOURCES: Companies, RBN Energy
    
    

 (Reporting by Rod Nickel in Winnipeg, Manitoba and Victoria
Klesty in Oslo; Editing by Anna Driver)
 ((rod.nickel@tr.com; Twitter: @RodNickel_Rtrs;))