Texas [US]: Yara Clean Ammonia and Enbridge announced that they have entered a letter of intent to collaborate on the development and construction of a low-carbon blue Ammonia manufacturing plant as joint partners. Located in the Enbridge Ingleside Energy Center (EIEC) near Corpus Christi, Texas, the proposed facility will integrate autothermal reforming with carbon capture technology.
Upon becoming operational, the production facility will have the ability to provide low-carbon Ammonia to cater to the rising global demand, with an estimated capacity ranging between 1.2m to 1.4m tons every year. It is anticipated that about 95% of the resulting carbon dioxide from the production process will be captured and transported to permanent geologic storage in the nearby vicinity. The total project investment is expected to be between $2.6bn to $2.9bn, contingent on completion of the front-end engineering design (FEED) phase and approval. The production is anticipated to begin in 2027/2028.
Enbridge and Yara are coming together to collaborate on a project tapping into their combined strengths. The Ammonia development and operational knowledge of Yara will be complemented by Enbridge's infrastructure development proficiency, along with their EIEC deepwater docks and export platform. Their expertise will be crucial in taking the project from development stages to commercial operations. Yara, being the biggest Ammonia distributor worldwide, plans to enter into a full offtake agreement with the facility further increasing the project's strategic value and commercial feasibility.
Enbridge is set to transport feed gas for the production process in the Texas Eastern Transmission Pipeline. Meanwhile, Enbridge and Oxy Low Carbon Ventures are jointly driving forward a CO2 sequestration hub close by, which could potentially receive the captured CO2 from the project. However, any construction activities will be undertaken only after obtaining all the required regulatory approvals.
