Engineering Mc Dermott Wins Feed Contract for Clean Energy Project in USA

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Mc Dermott has secured a feed contract by Clean Hydrogen Works for its Ascension Clean Energy Project in Louisiana, USA. The project is expected to initially produce 2.4 million MTPA of clean ammonia, with expansion in subsequent phases to 7.2 MTPA.

Texas/USA – Clean Hydrogen Works (CHW) and Mc Dermott have recently announced that CHW has awarded Mc Dermott the front-end engineering and design (Feed) contract for the Ascension Clean Energy (Ace) Project. The project is jointly developed by CHW with strategic shareholders Exxonmobil, Mitsui O.S.K. Lines, and Hafnia.

Located in Ascension Parish, Louisiana, the Ace Project will initially produce 2.4 million metric tons per annum (MTPA) of clean ammonia, with expansion in subsequent phases to 7.2 MTPA. With carbon capture and sequestration (CCS) contracts with Exxonmobil, regulatory approvals expected by early 2025, off-take in advanced discussions and Goldman Sachs as Financial Advisor, the Ace Project is expected to reach Final Investment Decision (FID) by late 2025 and start production in 2029.

Johnny Cook, CHW Senior Vice President of Engineering, Procurement and Construction (EPC) commented, "We are thrilled to partner with Mc Dermott, a company renowned for its extensive experience in mega module construction, demonstrated by a remarkable track record of on-time, on-budget execution of major energy and chemicals projects. This collaboration further strengthens key competitive advantages of our project, including being a mega module capable site with ready infrastructure access to gas, shipping and CCS, an unmatched shareholder base with expertise in CCS and maritime transport, and an experienced team with demonstrated success in executing mega module projects."

Vee Godley, CHW Senior Vice President, Project Development added, "This transformational project is expected to bring 350 new jobs, 1,500 peak construction jobs and another 1,200 indirect jobs to the area. We look forward to working with Mc Dermott toward our shared goal of constructing and operating a safe, environmentally responsible project. We value direct engagement with the community; this ongoing dialogue is critical in developing a project of which we can all be proud."

"This Feed award is testament to Mc Dermott's industry-leading mega-module delivery and installation expertise, and the breadth of our capabilities across the energy transition," said Rob Shaul, Mc Dermott's Senior Vice President, Low Carbon Solutions. "Our integrated delivery model, with self-perform construction capabilities and portfolio of Mc Dermott-owned, globally diversified, module fabrication yards means we can offer CHW a repeatable modular implementation solution that is expected to maximize value, reduce risk and provide quality assurance."

Under the contract scope, Mc Dermott will provide Feed, plus engineering, procurement and construction (EPC) estimating and execution planning services under an engineering services agreement. The work will be led from Mc Dermott's Houston office with support from its Gurugram, India office.

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