Energy companies to develop low-carbon ammonia production export project Bulk Distributor

Tokyo-based INPEX Corporation, Paris-based Air Liquide Group, Oklahoma City-based LSB Industries and Houston-based Vopak Moda Houston have agreed to collaborate on the pre-FEED for the development of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel.

If the development proceeds, the project’s first phase is targeted to produce more than 1.1 million tonnes per annum (MTPA) of low-carbon ammonia by the end of 2027, with options for future expansions.

The parties completed a feasibility study on the project earlier this year and the preferred facility’s location on the Houston Ship Channel, the second largest petrochemical corridor in the world, leverages existing infrastructure assets.

Vopak Moda has invested in storage and handling infrastructure for bulk liquid products and currently operates an ammonia terminal that includes storage tanks and a newbuild dock with multiple deep-water berths.  The project also has access to utilities and would be near multiple pipelines that could supply raw materials like natural gas and water.

INPEX representative director, president & CEO Takayuki Ueda said: “As we approach the achievement of our net zero target by 2050, the unveiling of our low carbon ammonia project in Texas, USA, stands as a momentous testament to INPEX’s strong commitment to environmental leadership.”

“This project is well aligned with our strategy to become a leader in the global energy transition through the production of low-carbon ammonia,” stated Mark Behrman, LSB industries president and CEO. 

“As a long-standing, highly experienced nitrogen producer and developer of nitrogen production facilities, we are uniquely positioned to play a key role in a critical element of this project by overseeing the design, construction and operation of the ammonia loop. We are excited to be part of this consortium, comprised of best-in-class energy-related companies, and look forward to working with them as we make the vision of this world scale clean ammonia facility a reality.”

Maria Ciliberti, Vopak President US and Canada, and Moda Midstream Co-Founder and CEO Jonathan Ackerman released a joint statement about the project: “The worldwide movement to decarbonise industry and transportation will drive strong global demand for low-carbon ammonia.”

Adam Peters, CEO of Air Liquide North America, said: “Air Liquide is committed to working with its customers and industry partners to provide innovative and sustainable technology solutions to decarbonise traditional industrial processes, like ammonia production.”

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