Yara, Enbridge to Build Low-Carbon Ammonia
Yara and Enbridge have signed a letter of intent to develop and build a large-scale low-carbon blue ammonia production plant as equal partners, which is now underway.
The planned plant, featuring autothermal reforming with carbon capture, will be situated at Enbridge Ingleside Energy Center (EIEC) in Corpus Christi, Texas.
After completion, the plant is anticipated to produce 1.2–1.4 million tonnes of low-carbon ammonia annually, catering to the surging global demand. Around 95% of the CO2 emissions from the manufacturing process will be captured and dispatched to a permanent geologic storage location nearby. If approved following the Front-end Engineering Design (FEED) phase, the entire project is likely to require a total investment of between US$2.6 billion and US$2.9 billion, with production commencing in 2027 or 2028.
Enbridge and Yara will leverage their unique strengths to collaborate on the project's development and execution. Yara's expertise in ammonia development, production, operations, and distribution, along with Enbridge's proficiency in developing large-scale infrastructure and the state-of-the-art EIEC deep-water docks and export platform, will be critical in driving the project from the development stage to commercial operations.
Furthermore, as the world's largest ammonia distributor, Yara is expected to secure full offtake from the facility, further boosting the project's strategic value and commercial feasibility.
Enbridge's Texas Eastern Transmission Pipeline is set to transport the feed gas required for the production process, while Enbridge and Oxy Low Carbon Ventures are jointly developing a nearby CO2 sequestration hub that could potentially serve as a destination for the captured CO2 from the project. However, the construction of these facilities is subject to obtaining all required regulatory approvals.
Colin Gruending, Enbridge Executive Vice President and President of Liquids Pipelines, said, "We are delighted to partner with Yara and collaborate on this clean energy project, particularly given their expertise in global ammonia projects, operations, and distribution. EIEC is poised to become North America's most sustainable export terminal, with low-carbon fuel production, carbon capture, and solar self-power."
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, stated, "Yara is pleased to join Enbridge in developing this significant clean ammonia project. As discussed during our Capital Markets Day, we are systematically working on project opportunities in the U.S. This project will significantly contribute to our strategy of decarbonising agriculture and also serve new clean ammonia segments, such as shipping fuel, power generation, and ammonia as a hydrogen carrier."
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Source: Enbridge
