More CCS projects announced for the US Gulf Coast

OCI – Beaumont, Texas

New US-based, CCS ammonia announcements this week from OCI, CF Industries, JERA, ConocoPhillips and Uniper.
New US-based, CCS ammonia announcements this week from OCI, CF Industries, JERA, ConocoPhillips and Uniper.

Construction will start immediately on a world-scale facility in southeast Texas. The 1.1 million tonne per year facility already has scope to double in size to 2.2 million tonnes per year, with production to start in 2025. The plant will be based on KBR synthesis technology, and Maire Technimont has been performing EPC work in the background since July. In the press release, OCI notes that:

…the (CCS) ammonia will be delivered to customers using future zero carbon ammonia-fueled engine ships, leveraging OCI’s global infrastructure.

OCI official press release, 8 Sept 2022

And that recent policy developments in the US have helped to spur the project along:

The recent passage of the IRA, which bolsters the regulatory framework and competitiveness of clean ammonia in the US, in addition to technological developments in carbon sequestration, is supporting ammonia as a key driver of the energy transition.

OCI N.V. Executive Chairman Nassef Sawiris in his organisation’s official press release, 8 Sept 2022

(Also OCI – Wever, Iowa)

This week OCI also announced FID has been reached for their CCS ammonia project in Iowa. Emissions from OCI’s existing, million tonne per year plant in Wever will be captured, then transported and sequestered by Navigator CO2’s proposed Heartland Greenway pipeline system. In the first phase, OCI is targeting abatement of 40% of plant emissions, and has selected technology provider Enerflex to supply a turnkey carbon capture & processing system for installation at the site.

CF Industries – Ascension Parish, Louisiana

CF is currently assessing a site for construction of a $2 billion CCS ammonia production facility in Louisiana. To be developed in conjunction with Mitsui & Co., a year-long FEED study will proceed immediately, with an FID expected in 2023.

JERA, Uniper & ConocoPhillips – multiple export projects

JERA Americas and ConocoPhillips will develop 2 million tonnes per year of clean ammonia production output on the US Gulf Coast, with potential to expand to 8 million tonnes production output over multiple projects: both CCS-based and electrolysis-based. Targeting commercial operations for the first facility later this decade, ammonia will be supplied to JERA and Uniper “under long-term sale and purchase agreements”, with exports destined for Germany and Japan. Both Uniper and JERA have made headlines this year as they continue to secure long-term offtake agreements for low and zero-carbon ammonia projects.

The combination of a skilled workforce, plentiful natural gas, abundant renewable resources, deep-water ports, and ideal CCS geology make the US Gulf Coast uniquely advantaged to produce the low carbon fuel to enable the Atlantic and Pacific energy markets transition. JERA and ConocoPhillips will be a low-cost ammonia supplier to domestic and international markets. We believe this project offers a unique opportunity to support Germany’s decarbonization efforts while advancing ammonia technology development for hydrogen distribution and industrial decarbonization.

JERA Americas CEO Steven Winn in Uniper’s official press release, 5 Sept 2022
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