According to Reuters, several fertilizer companies are racing to construct plants along the U.S. Gulf of Mexico to produce blue ammonia, a low-emissions compound primarily used for fertilizer. The location along the Gulf Coast offers advantages such as subsidies under the Inflation Reduction Act and existing export infrastructure. Dutch fertilizer producer OCI is leading the race, with construction underway for its 1.1 MM metric tpy plant in Beaumont, Texas.

CF Industries has committed $285 MM to enable existing plants in Louisiana and Mississippi to process carbon before transporting it for sequestration. It is also considering building a new blue ammonia plant in Louisiana with partner Mitsui, with an FID expected in 2023 and production commencing in 2027. Yara is exploring developing a second site of similar capacity with BASF in Germany, with a feasibility study expected by end-2023 and production projected to begin in 2028-2029. Canadian producer Nutrien is evaluating a site in Geismar, Louisiana, where it already has a facility, to produce 1.2 MM metric t of blue ammonia in partnership with Denbury for carbon sequestration.

Mitsubishi has signed a non-binding agreement to purchase up to 40% of the plant's production, and a final investment decision is expected in 2023, with production beginning by 2027. Several fertilizer companies are racing to construct plants along the U.S. Gulf of Mexico to produce blue ammonia, a low-emissions compound primarily used for fertilizer. The location along the Gulf Coast offers advantages such as subsidies under the Inflation Reduction Act and existing export infrastructure. Dutch fertilizer producer OCI is leading the race, with construction underway for its 1.1 MM metric tpy plant in Beaumont, Texas.

CF Industries, one of the world's largest ammonia producers, has committed $285 MM to enable existing plants in Louisiana and Mississippi to process carbon before transporting it for sequestration. It is also considering building a new blue ammonia plant in Louisiana with partner Mitsui, with a final investment decision expected in 2023 and production commencing in 2027. Yara is exploring developing a second site of similar capacity with BASF in Germany, with a feasibility study expected by end-2023 and production projected to begin in 2028-2029.

Canadian producer Nutrien is evaluating a site in Geismar, Louisiana, where it already has a facility, to produce 1.2 MM metric t of blue ammonia in partnership with Denbury for carbon sequestration. Mitsubishi has signed a non-binding agreement to purchase up to 40% of the plant's production, and a final investment decision is expected in 2023, with production beginning by 2027.

Source: Reuters