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World–Scale Ammonia Project

Borealis and Agrifos Plan World–Scale Ammonia Plant on Texas Gulf Coast

| Editor: Dominik Stephan

Borealis and Agrifos plan a new ammonia project in Texas at a yet to decide site.
Borealis and Agrifos plan a new ammonia project in Texas at a yet to decide site. (Picture: Frauke Feind (CC0))

New megaplant–project in the US: Chemicals and fertilizers company Borealis and Agrifos join forces for a new world-scale ammonia project through Gulf Coast Ammonia in Texas.

Houston, Texas/USA – Gulf Coast Ammonia is currently negotiating with site owners in Texas and expects to make a final site selection within the coming few months, speakers explained. The brownfield, hydrogen-based project is scheduled for mechanical completion and start-up in early 2019. The integration in an existing site shall help the project to benefit from existing infrastructure and logistics capabilities which will allow product supply to a variety of long-term off-takers and customers. Borealis would also enter into a long-term offtake agreement for approximately 40 % of the ammonia produced by the plant.

“We have a clear strategy of expanding our global nitrogen business,” says Markku Korvenranta, Borealis Executive Vice President Base Chemicals. ”By participating in the development of, construction of and offtake from a world-scale project in the US, Borealis is able to secure long-term supplies of ammonia based on the attractive economics of U.S. natural gas. It also is a key step in the Borealis goal to sell 10 million tons of nitrogen-based fertilizer products per year by 2020. Gulf Coast Ammonia’s project is all the more compelling because it builds on existing site capabilities and assets along the US Gulf Coast.”

GCA is a company formed by Agrifos Partners to develop a world-scale ammonia plant along the Texas Gulf Coast. The project will utilise hydrogen and nitrogen feedstock, with pricing linked to US natural gas indexes. Agrifos has extensive experience in acquiring, developing and operating fertilizer production assets. The company expects to make further announcements in the near future concerning additional product offtake commitments, feedstock supply arrangements, permitting and construction contracts.

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