Air Liquide and a consortium of partners are looking at the feasibility of a 1.1 million tonnes per annum low-carbon ammonia production and export project on the Houston Ship Channel.
The group, formed of Air Liquide, INPEX Corporation, LSB Industries, and Vopak Moda has agreed to collaborate on the pre-FEED for the project, following a previously completed feasibility study.
It is hoped the project will be operational by 2027, with options for future expansions.
Most of the product is expected be used for power generation in Asia, with some volumes going to Europe and the US. INPEX, with stakes in both hydrogen and ammonia production, will likely be the largest investor in the overall project across the entire value chain, from production to export.
Each project partner will have a role to play in the development of the site. Specifically, Air Liquide and INPEX have agreed to collaborate on low-carbon hydrogen production. Air Liquide will supply its Autothermal Reforming (ATR) technology and its carbon capture technology.
LSB and INPEX have agreed to collaborate on low-carbon ammonia production. LSB will lead the selection of the ammonia loop technology provider, the pre-FEED, and the engineering, procurement, and construction of the facility.
INPEX and LSB will sell the low-carbon ammonia and finalise off-take agreements with parties that have expressed interest and could be a future partner of the project.
Vopak Moda currently operates ammonia storage and handling infrastructure in the Houston Ship Channel. The company will maintain its ownership of the existing infrastructure and plans to build additional storage capacity as required.
According to the Energy Information Administration (EIA), as of 1st April 2021, ammonia is produced at 31 plants in 17 US states and shipped around the country by pipeline, rail, barge, and truck.
The US Geological Survey, further states that US ammonia production has been increasing since 2015, rising 46% from 11.6 million metric tonnes per year to 17.0 million metric tonnes per year in 2020.
