Fertilizer and crop inputs provider Nutrien announced today plans to invest $2 billion to build the world’s largest clean ammonia facility, capable of producing 1.2 million tonnes of low-carbon ammonia to help decarbonize hard-to-abate industries.
Hydrogen, and related materials like ammonia, are viewed as one of the key building blocks of the transition to a cleaner energy future, given their ability to act both as clean energy carriers and fuels, as well as CO2-neutral feedstocks for the production of green chemicals.
Ken Seitz, Interim President and CEO, Nutrien, said:
“Our commitment to the development and use of both low-carbon and clean ammonia is prominent in our strategy to provide solutions that will help meet the world’s decarbonization goals, while sustainably addressing global food insecurity.”
The facility, planned at Nutrien’s existing Geismar LA facility, will utilize technology to achieve at least 90% reduction in CO2 emissions, permanently sequestering over 1.8 million metric tons of CO2 in dedicated geological storage each year. Nutrien also announced a new agreement with Carbon Capture, Use and Storage (CCUS)-focused energy company Denbury, for the transportation and sequestration of the associated CO2 into Denbury’s secure underground containment sites.
Chris Kendall, Denbury’s President and Chief Executive Officer, said:
“We are thrilled to expand our successful long-term partnership with Nutrien through this world class project. We believe that CCUS-enabled clean ammonia will be an important source of energy in a lower-carbon future, and we are honored by the confidence and trust that Nutrien has continued to place in Denbury to provide this important service.”
The new plant will also use auto thermal reforming technology to reach the lowest carbon footprint of any plant at this scale.
Nutrien expects to make a final investment decision on the facility in 2023, with construction slated for 2024, and full production in 2027.
Raef Sully, Executive Vice President and CEO of Nitrogen and Phosphate, Nutrien, said:
“Nutrien is optimally positioned to supply global emerging clean ammonia markets and grow a pathway for a decarbonized supply chain.”