USA – OCI N.V. will begin work on a KBR-based, 1.1 million ton per year blue ammonia facility in Beaumont, Texas.
The US Inflation Reduction Act (IRA) was passed, and the Act’s improved 45Q credits made the project more alluring.
The US Gulf is a strategic location that enables the facility to serve the US market as well as export clean ammonia as a hydrogen carrier to markets with a shortage of hydrogen around the world, including Europe and Asia. It also allows the facility to cater to anticipated significant demand from new applications, including power and shipping fuels. Taking use of OCI’s extensive worldwide infrastructure, future zero carbon ammonia-fueled engine ships will transport the blue ammonia to consumers.
The project is well underway; manufacturing is scheduled to begin in Q1 2025, and comprehensive engineering and procurement work began earlier this year. A vital long-lead piece of equipment has been ordered, the project has been awarded to Maire Tecnimont on an engineering and procurement basis, and site work is expected to begin soon.
As stated in the Q1 2022 results report, OCI’s guidance for the Group’s capital expenditure in 2023 is up to $450 million in growth Capex. The utilities and accessible land have been sized to allow for future construction of a second 1.1 million ton per year blue ammonia line, which would double the capacity.
By 2023, OCI’s Port of Rotterdam ammonia import terminal’s throughput capacity will have tripled, to 1.2 mtpa, in order to meet the growing demand for ammonia for bunkering oceangoing ships and serve as a hub to aid in the EU’s decarbonization and decrease its dependency on imported natural gas. Additionally, the new facility is positioned to deliver blue ammonia to OCI’s Dutch manufacturing facilities.
As green hydrogen becomes more widely available, this effort is intended to switch from producing blue to green ammonia in the future.