Yara Clean Ammonia and Enbridge Inc. announces their intention to jointly develop a large-scale low-carbon blue ammonia production facility as equal partners.
Yara Clean Ammonia and Enbridge join forces to develop clean ammonia facility
The proposed facility will be located at Enbridge’s Ingleside Energy Center near Corpus Christi, Texas, and will include an autothermal reformer with carbon capture. The production facility must have a capacity of 1.2 to 1.4 million tons per year. It must be able to supply low-carbon ammonia to meet the growing global demand. Approximately 95% of the carbon dioxide (CO2) generated by the production process must be captured and transported to a nearby permanent geological storage.
The total investment for the project is expected to be between US$2.6 and US$2.9 billion, with production scheduled to begin in 2027/2028. Enbridge and Yara will use their complementary strengths to develop and execute the project.
Yara is an expert in the development, production, operation and distribution of ammonia. Enbridge is an expert in large-scale infrastructure development and the world-class EIEC deepwater export platform. The combination of their expertise is essential to move the project from the development phase to commercial operation.
The strategic value and commercial viability of the project is reinforced by the conclusion of a full purchase agreement by Yara. The Enbridge Texas Eastern Transmission Pipeline is expected to provide transportation service for the feed gas. It will be used for the production process. In addition, Enbridge, along with Oxy Low Carbon Ventures, is advancing a nearby CO2 sequestration facility, which becomes a potential destination for the project’s captured CO2.
Construction of any facility is subject to receipt of all necessary regulatory approvals. If the project is confirmed in the design phase, prior to detailed engineering (FEED), and approved, it is expected to contribute significantly to Yara’s strategy to decarbonize agriculture. But also serve new clean ammonia segments such as marine fuel, power generation and ammonia as a hydrogen carrier.
A major project for the decarbonization of energy
Colin Gruending, Executive Vice President and President of Pipeline Liquids at Enbridge, said, “We are excited to partner with Yara and collaborate on this clean energy project, especially given their expertise in ammonia projects, operations and distribution around the world. EIEC is well positioned to become the most sustainable export terminal in North America through low-carbon fuel production, carbon capture and solar self-supply.”
Yara Clean Ammonia President Magnus Krogh Ankarstrand said, “Yara is pleased to join Enbridge in developing this important clean ammonia project. As presented at our Capital Markets Day, we are working systematically to develop project opportunities in the U.S. and this project will contribute significantly to our strategy of decarbonizing agriculture as well as serving new clean ammonia segments such as marine fuel, power generation and ammonia as a hydrogen carrier.”
For example, Yara Clean Ammonia and Enbridge Inc. are joining forces to develop and build a low-carbon blue ammonia production facility in Texas. The project, which is subject to regulatory approval, is expected to make a significant contribution to Yara’s agriculture decarbonization strategy. In addition, it would also help serve new clean ammonia segments, while providing Enbridge with the opportunity to position the Enbridge Ingleside Energy Center as the most sustainable export terminal in North America.
