Yara Clean Ammonia, a Yara International ASA company, and Enbridge Inc. signed a letter of intent to develop and construct jointly 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 growing global demand, with an expected capacity of 1.2–1.4 million tons per annum. Approximately 95% of the CO2generated 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 US$2.6–US$2.9 billion, with production start-up in 2027/2028.
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, the world’s largest ammonia distributor, is expected to contract full offtake from the facility, which further enhances the strategic value and commercial viability of the project.
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.
Yara Clean Ammonia operates the largest global ammonia network with 15 ships and access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world, through Yara International. Yara Clean Ammonia’s revenues and EBITDA for 2022 were US$4,428 million and US$249 million respectively. Yara Clean Ammonia is headquartered in Oslo, Norway.
