Japanese exploration and production company Inpex Corp, Paris-based Air Liquide Group, Oklahoma City-based LSB Industries, Inc. and Houston-based Vopak Moda Houston LLC are collaborating on the engineering and preliminary design for the development of a large-scale low-carbon ammonia production and export in the Houston Ship Channel.
If the project goes ahead, its first phase aims to produce more than 1.1 million metric tonnes per annum (mtpa) of low-carbon ammonia by the end of 2027, with options for future expansions, Inpex said in a press release on Monday. The parties completed a feasibility study of the project in early 2023.
Inpex said the Houston Ship Channel, the world’s second largest petrochemical corridor, is the target location as it leverages existing infrastructure assets such as Vopak Moda’s ammonia terminal which includes storage tanks and a newly built wharf with multiple deep water berths. The proposed facility would also have access to utilities and would be close to several pipelines that could supply commodities such as natural gas and water.
Air Liquide and Inpex plan to collaborate on low-carbon hydrogen production. Air Liquide would supply its AutoThermal Reforming (ATR) technology, an ideal solution for large-scale hydrogen production projects, combined with its patented carbon capture technology. Combining ATR technology with carbon capture aims to capture at least 95 percent of direct carbon dioxide emissions from hydrogen production with at least 1.6 mtpa of carbon dioxide captured and permanently sequestered from project Air Liquide would be responsible for the production of nitrogen and oxygen on site, using its patented air separation unit technology, according to the statement.
LSB and Inpex want to collaborate in the production of low-carbon ammonia. LSB would lead the ammonia loop technology supplier selection, pre-FEED and engineering, procurement and construction of the facility. LSB would also be responsible for the day-to-day operation of the ammonia loop, according to the release.
Inpex and LSB aim to sell the low-carbon ammonia and finalize purchase agreements with the many parties that have expressed interest and could also collaborate on the project. Most of the product is destined to be used for power generation in Asia, with some volumes destined for Europe and the US. Inpex, with stakes in both hydrogen and ammonia production, said it is likely to be the largest investor in the global project across the entire value chain, from production to export.
Vopak Moda will retain ownership of the existing infrastructure and plans to build additional storage capacity as needed to handle low-carbon ammonia production from the proposed new facility.
“As we move closer to achieving our net zero goal by 2050, the unveiling of our low-carbon ammonia project in Texas, USA, is a momentous testament to INPEX’s strong commitment to the environmental leadership,” Takayuki Ueda, Inpex Representative Director, President and CEO. said “This innovative effort marks an important milestone in creating a clean fuel supply chain for a sustainable future. By harnessing the power of cutting-edge technologies and collaborative partnerships with Air Liquide, LSB and Vopak Moda, we are accelerating the transition to a low-carbon world, while solidifying our position as a pioneer in energy transformation and a global player in responsible energy.”.
“This project is well aligned with our strategy to become a leader in the global energy transition through low-carbon ammonia production,” said Mark Behrman, president and CEO of LSB Industries. “As a highly experienced nitrogen producer and developer of nitrogen production facilities, we are in a unique position to play a key role in a critical element of this project by overseeing the design, construction and operation of the loop of ammonia. We are delighted to be part of this consortium of the best energy-related companies and look forward to working with them as we make the vision of this world-class clean ammonia facility a reality.”
“The global movement to decarbonize industry and transportation will drive strong global demand for low-carbon ammonia,” Vopak USA and Canada president Maria Ciliberti and Moda Midstream co-founder and CEO said in a joint statement , Jonathan Ackerman. “Vopak Moda has invested in our talented and experienced workforce and state-of-the-art storage and marine infrastructure to be a leader in the emerging low-carbon ammonia export market. We believe the unbeatable combination of project expertise, technology, buyer relationships and credible market position Vopak Moda, Air Liquide, Inpex and LSB are the first drivers of a new wave of low carbon energy exports.”
“Air Liquide is committed to working with its customers and industry partners to deliver innovative and sustainable technology solutions to decarbonize traditional industrial processes, such as ammonia production,” said Adam Peters, CEO of Air Liquide North America. “We are proud to bring our expertise in hydrogen production and our portfolio of sustainable technologies to produce low-carbon hydrogen to support the decarbonisation of industrial markets. Together with our customers, we can reduce carbon emissions to industrial basins and move towards a more sustainable future”.
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