Wabash Valley Resources Secures $1.6 Billion Federal Loan for Ammonia Fertilizer Facility

The U.S. Department of Energy (DOE) has announced a conditional commitment to provide Wabash Valley Resources LLC with a loan guarantee of up to nearly $1.6 billion for its anhydrous ammonia fertilizer project in West Terre Haute. This funding is part of a broader $2.4 billion investment aimed at converting a former Duke Energy plant in Vigo County to produce ammonia fertilizer. The initiative will also feature a carbon sequestration component, positioning the project to potentially become the world’s first carbon-negative ammonia production facility.

Dan Williams, Chief Operating Officer of Wabash Valley Resources, highlighted the benefits of relocating production to Indiana. “Currently, most of the ammonia consumed in Indiana is imported from the Gulf Coast or internationally, which increases retail prices due to high logistics costs,” Williams explained. He noted that the cost of anhydrous ammonia surged in 2022 following the Ukraine conflict, and increasing domestic production would shield the U.S. from international market fluctuations. The new plant will not only offer cost-effective, low-carbon ammonia but also stabilize the supply chain and improve pricing stability.

Once completed by late 2027, the facility is expected to produce approximately 500,000 metric tons of anhydrous ammonia annually. This output will support farmers across the Eastern Corn Belt, including central Indiana, western Ohio, and parts of southern Michigan. Former Indiana Farm Bureau President Don Villwock emphasized the significant impact, stating, “A new, local source of low-carbon ammonia will greatly benefit Hoosier farmers.”

The project will create about 135 permanent jobs with an average annual salary of around $129,000, plus approximately 500 construction jobs. According to the DOE, this facility will be the first domestic producer in the Corn Belt of low-carbon ammonia, which will be competitively priced compared to imports. It will also contribute to job creation and lower costs for local businesses and consumers.

The conditional commitment from the DOE signifies an intention to finance the project, contingent upon meeting certain technical, legal, environmental, and financial conditions. Wabash Valley Resources aims to finalize the loan and commence construction within the next six months. The project includes the installation of wells for carbon dioxide storage, with two permits issued by the U.S. Environmental Protection Agency in January for wells in Vermillion and Vigo counties.

The DOE noted that ammonia production, a critical component of the agricultural system, significantly contributes to CO2 emissions. The planned carbon sequestration is expected to mitigate this impact, with about 1.67 million metric tons of CO2 projected to be stored annually over a 12-year period.

Greg Zoeller, Wabash Valley Resources' Vice President of External Affairs, emphasized that the carbon sequestration aspect was crucial in securing the DOE’s commitment. “The focus on carbon sequestration addresses both global environmental concerns and the need for a stable local supply,” he said. In July, the company partnered with Baker Hughes for support in their carbon sequestration efforts. The loan commitment is part of the DOE’s Energy Infrastructure Reinvestment program, created by the Inflation Reduction Act.