OCI Global: renewable ammonia in Texas
By on September 26, 2023
Electrolytic hydrogen feedstock secured from New Fortress Energy
Beginning in 2025, OCI will offtake electrolytic hydrogen for ammonia production at its existing plant in Beaumont, Texas. Via its new hydrogen division, New Fortress Energy is developing the ZeroParks electrolysis facility adjacent to OCI, with 200 MW total of electrolysers to be operational from 2026. The first phase (100 MW of PEM electrolyser units on order from Electric Hydrogen Co.) will be operational in 2025, providing enough hydrogen feedstock to OCI for the production of 80,000 tonnes of renewable ammonia per year at Beaumont.
The announcement indicates that OCI will leverage its existing infrastructure at Beaumont to scale renewable ammonia production. Currently, Beaumont has enough synthesis capacity to produce around 365,000 tonnes of ammonia per year. Even without significant capital expenditure, the new initiative will qualify for government incentives under the Inflation Reduction Act’s 45V program.
OCI is a leading global producer and distributor of hydrogen-based products and today’s announcement showcases our focus on developing green hydrogen projects of scale to successfully decarbonize hard-to-abate corners of the global economy such as agriculture, power, and marine fuels. OCI is already at the forefront of decarbonization efforts in the international arena which made them a clear and solid choice as a partner.
Wes Edens, Chairman and CEO, New Fortress Energy in OCI Global’s official press release, 15 Sept 2023
NFE is an established energy player and developer and we are excited to start this partnership with them at our Beaumont complex, which is ideally located in the center of the Gulf Coast, allowing us to continue to increase and optimize our over-the-fence feedstock portfolio.
Nassef Sawiris, Executive Chair, OCI Global in his organisation’s official press release, 15 Sept 2023
Building an “over-the-fence feedstock portfolio”
OCI is taking a similar “over-the-fence” feedstock approach with the development of its new, 1.1 million tonne per year ammonia plant, to be built next door to existing facilities at Beaumont. Ground was broken last year on the ammonia synthesis plant (KBR to act as technology provider, Maire Tecnimont as EPC provider).
Earlier this year, Linde announced it would be the “over-the-fence” feedstock provider. Linde will build, own and operate an adjacent CCS hydrogen plant, coupling autothermal reforming and CCS to capture more than 95% of production emissions. Hydrogen production will start in 2025, with OCI to act as exclusive offtaker.
Beaumont: methanol, capacity expansion & future plans
OCI produces over 1.4 million tonnes per year of methanol at its Beaumont complex. Thanks to other over-the-fence partnerships, OCI has the capacity to produce 200,000 tonnes per year of this as “green” methanol, via biogas and/or electrolytic hydrogen feedstocks. OCI intends to double this capacity in the coming years, and is also a joint partner in the nearby Natgasoline project: a 1.8 million tonnes per year methanol production facility which went online in 2018.
Where ammonia is concerned, the new “blue” production facility has enough room set aside to double in capacity to 2.2 million tonnes per year. OCI is targeting the marine fuel and overseas power generation markets for this Gulf Coast ammonia, including in South Korea and the Netherlands.