LSB Industries Inc., Oklahoma City, on May 25 announced that it entered into agreements with Thyssenkrupp Uhde U.S. LLC, Houston, and Bloom Energy, San Jose, Calif., to develop a project to produce approximately 30,000 mt/y zero-carbon or green ammonia at LSB’s Pryor, Okla., facility.
Thyssenkrupp will develop the engineering design to convert a small portion of Pryor’s existing conventional ammonia capacity into green ammonia, while Bloom will be involved in electrolyzer supply.
“We are very excited to partner with Bloom Energy and Thyssenkrupp Uhde in taking our first step to becoming a leading supplier of zero carbon or green ammonia in a unique facility that will have two electrolyzer technologies operating side by side,” said Mark Behrman, LSB President and CEO. “We believe that being an early entrant into the green ammonia space will allow us to become a leading player as the market evolves.
“This project is very important for LSB and our partners, because in addition to its initial environmental benefit, it provides a learning opportunity,” Behrman continued. “With two electrolyzer technologies working together in a real-world application, we can learn how to effectively develop projects and operate facilities in this exciting new environment. We view this project as our first critical step in becoming a major facilitator and participant in the green ammonia market of the future.”
Green ammonia will be produced by extracting hydrogen from water using the electrolyzers powered by a renewable fuel source, such as solar or wind. Since no fossil fuels are involved in the process, the end-product has no associated carbon emissions.
Pending results of the feasibility study currently underway, and subsequent Board approval, the project will be constructed in two phases: first with Bloom supplying a 10 megawatt (MW) solid oxide electrolyzer, followed by the installation of an additional 20MW alkaline electrolyzer unit, which will be sourced from a leading manufacturer. Bloom will own, operate, and maintain the solid oxide electrolyzer that, once in operation, will be the largest of its kind in the world.
Once the second electrolyzer is installed and operational, LSB said Pryor will be the largest green ammonia production site in North America. Currently, CF Industries Holdings Inc., Deerfield, Ill., has a 20,000 st/y green ammonia plant under construction at its Donaldsonville, La. complex (GM April 23, 2021).
The green hydrogen produced from the electrolyzers as part of the ammonia production process is expected to qualify for federal incentive programs such as the production and investment tax credits currently under evaluation by Congress.
LSB’s green ammonia news quickly follows an April announcement that it plans to produce blue ammonia at its El Dorado, Ark. facility (GM April 29, p. 1). Carbon sequestration at the site will allow for the production of 375,000 mt/y of blue ammonia. Completion of that project is expected by 2025. Some 450,000 mt/y of CO2 is expected to be sequestered underneath the El Dorado plant.
LSB partner Lapis Energy will fund the full capital requirements of the El Dorado sequestration facility and will pay LSB $1/mt for the CO2. Lapis will receive the full benefit of current $50/mt tax credit under Internal Revenue Code Section 45Q. Should the credit move to $85/mt as is proposed, LSB told analysts on May 4 that an outsized portion of that increase will come back to LSB.