Yara International ASA said Oct. 18 that it and BASF are evaluating a possible joint investment in a world-scale ammonia plant at the U.S. Gulf Coast.
Yara lined up the reasoning for the move, noting that it has a global ammonia network and market expertise with the desire to increase its presence in the U.S. At the same time, BASF has a strong presence in the U.S. and is currently a major user of ammonia for its U.S. downstream manufacturing activities. BASF seeks to further strengthen its backward integration.
Yara said additional details of the possible joint venture, including the exact location for the plant, as well as the capacity of the plant, are currently being discussed by the parties.
The news adds another name to the very long list of proposed nitrogen projects for North America. Earlier this year, Yara, citing cost concerns, tabled plans for a major new plant at the site of its existing Yara Belle Plaine nitrogen complex in Saskatchewan.