Fertiliser companies are leading the race to build plants along the U.S. Gulf of Mexico to produce low-emissions ammonia.

Reuters reported that multiple fertiliser companies are in a competitive race to establish facilities along the U.S. Gulf of Mexico to produce blue ammonia, a low-emission compound primarily utilised in fertiliser production.

Chemical Plant for Ammonia/Nitrogen Fertiliser

The strategic location along the Gulf Coast provides distinct advantages for industrial-scale blue-ammonia plant construction, including subsidies under the Inflation Reduction Act and existing export infrastructure.

Reuters reported that the active pursuit of constructing these plants underscores the growing significance of blue ammonia in the fertiliser industry.

  • OCI, a Dutch fertiliser producer, is leading this race, actively constructing a 1.1 million metric tons per year (MM tpy) plant in Beaumont, Texas.
  • CF Industries, counted among the world's major ammonia producers, has pledged an investment of $285 million to facilitate the adaptation of existing plants in Louisiana and Mississippi for carbon processing before its transport for sequestration.
  • Additionally, CF Industries is contemplating the construction of a new blue ammonia plant in Louisiana in collaboration with Mitsui. A final investment decision for this project is anticipated in 2023, with production scheduled to commence in 2027.
  • Yara is in the exploratory phase of developing a second facility of comparable capacity with BASF in Germany. A feasibility study is expected to conclude by the end of 2023, and production is envisioned to commence between 2028 and 2029. Meanwhile, Canadian producer Nutrien is assessing a site in Geismar, Louisiana, where it already operates a facility.
  • Nutrien aims to produce 1.2 million metric tons of blue ammonia in partnership with Denbury for carbon sequestration.
  • Mitsubishi has entered a non-binding agreement to acquire up to 40% of the plant's production. Mitsubishi's final investment decision is forecasted for 2023, and production is slated to be initiated by 2027.

It's all exciting as ammonia is forecasted to be in high demand — but here's our question: is carbon sequestration the right solution?

While carbon sequestration in ammonia synthesis is a promising approach to mitigate greenhouse gas emissions, there are challenges and concerns associated with this process:

  1. Costs: implementing carbon capture and sequestration (CCS) technologies can be expensive. The additional costs of capturing, transporting, and storing carbon dioxide can significantly impact the overall economics of ammonia production.
  2. Energy intensity: capturing and sequestering carbon dioxide requires additional energy, which can offset the potential environmental benefits of using low-emission ammonia. This energy demand may come from fossil fuels, leading to a paradox where the effort to reduce one type of emissions increases another.
  3. Infrastructure requirements: building the necessary carbon capture and storage infrastructure is complex. It involves the development of pipelines and storage facilities for the captured carbon dioxide, adding logistical challenges and costs to the process.
  4. Technological maturity: while carbon capture technologies are advancing, they are not yet widely deployed at the scale needed for large industrial processes like ammonia production. Further research and development are needed to enhance the efficiency and cost-effectiveness of these technologies.
  5. Environmental impact: the environmental impact of long-term carbon storage is not fully understood. Questions about the permanence and safety of storing large quantities of carbon dioxide underground must be addressed to ensure that sequestration does not lead to unintended consequences.
  6. Regulatory and policy challenges: the legal and regulatory framework for carbon sequestration is still evolving in many regions. Companies may face uncertainties and potential liabilities related to the long-term storage of captured carbon dioxide.

Despite these challenges, carbon sequestration remains an area of research for industries seeking sustainable ways to reduce their carbon footprint. Addressing these issues will be essential for making carbon sequestration in ammonia synthesis a viable and environmentally beneficial solution.

At Nium, we focus on decentralised, clean, green ammonia synthesis on demand. We are always open to partnership discussions, and if you are interested in localised clean ammonia production on demand, please get in touch with us at hello@wearenium.com