Clean Hydrogen Works (CHW), in collaboration with strategic partners ExxonMobil, Mitsui O.S.K. Lines, and Hafnia, announced the award of the front-end engineering and design (FEED) contract to McDermott for the Ascension Clean Energy (ACE) project. Located in Ascension Parish, Louisiana, this large-scale initiative focuses on advancing energy transition through the production of clean ammonia at scale.
The ACE project is set to deliver an initial capacity of 2.4 million metric tons per annum (MTPA) of clean ammonia, with future phases targeting an expansion to 7.2 MTPA. A key feature of the project is the integration of carbon capture and sequestration (CCS) technologies developed in partnership with ExxonMobil. Regulatory approvals are expected by early 2025, with a final investment decision (FID) anticipated by late 2025 and production planned to commence in 2029.
Johnny Cook, CHW Senior Vice President of Engineering, Procurement, and Construction (EPC), emphasized the significance of partnering with McDermott, known for its expertise in large-scale modular construction. He noted that this collaboration reinforces the project’s competitive advantages, including access to gas, shipping, and CCS infrastructure, as well as the expertise of its shareholders in these areas.
Significant economic and social impacts
The ACE project is projected to bring considerable economic benefits to the region, including 350 permanent direct jobs, 1,500 jobs during construction, and 1,200 additional indirect jobs. Vee Godley, CHW Senior Vice President for Project Development, highlighted the importance of community engagement to ensure the project’s success and local acceptance.
Additionally, McDermott will provide expertise in modular design and integrated solutions. Rob Shaul, McDermott’s Senior Vice President for Low Carbon Solutions, highlighted the advantages of their integrated delivery model, which combines self-perform construction capabilities and a globally diversified network of module fabrication yards.
A milestone in the energy transition
The ACE project represents a major step forward in the clean ammonia industry, integrating advanced technologies to reduce greenhouse gas emissions. With Goldman Sachs as financial advisor, the project is advancing discussions on long-term off-take agreements to ensure its economic viability.
This partnership between CHW and McDermott reflects a shared commitment to sustainable energy solutions, with a rigorous approach to maximizing value, reducing risks, and ensuring operational quality.
