Yara, Enbridge to Develop Low-Carbon Blue Ammonia Production Facility

Billion Dollar Investment Yara, Enbridge to Develop Low-Carbon Blue Ammonia Production Facility

2023-04-04 Source: Press release Ahlam Rais 2 min Reading Time

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Yara along with Enbridge have plans to jointly develop a mega low-carbon blue ammonia production facility in Texas, USA. The project is expected to have a production capacity of 1.2–1.4 million tons of low-carbon ammonia per year.

Texas/USA – Yara Clean Ammonia (Yara), a Yara International company, and Enbridge, have recently announced the signing of 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.

Once operational, the production facility will be capable of supplying low-carbon ammonia to meet the growing global demand, 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. If confirmed through the Front-end Engineering Design (Feed) phase and approved, total project investment is expected in the range of 2.6–2.9 billion dollars, with production start-up in 2027/2028.

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Enbridge and Yara will utilize their complementary strengths to develop and execute the project. Yara’s industry-leading experience in ammonia development, production, operations and distribution, combined with Enbridge’s large-scale infrastructure development expertise and world-class EIEC deep water docks and export platform, will be critical to advancing the project from development through to commercial operation. In addition, Yara is expected to contract full offtake from the facility, which further enhances the strategic value and commercial viability of the project.

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Enbridge’s Texas Eastern Transmission Pipeline is expected to provide the transportation service for feed gas that will be used for the production process, and Enbridge, along with Oxy Low Carbon Ventures, is 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. “We are excited to partner with Yara and collaborate on this clean energy project, especially given their expertise in global ammonia projects, operations and distribution,” said Colin Gruending, Enbridge Executive Vice President and President, Liquids Pipelines. “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.”

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