St. Charles Clean Fuels (SCCF), a development company jointly owned by strategic energy investment company Copenhagen Infrastructure Partners and Sustainable Fuels Group, has added its name to the growing list of company’s exploring the feasibility of building a blue ammonia plant in Louisiana or Texas. SCCF is eyeing a $4.6 billion ammonia production and export facility in St. Charles Parish, according to Louisiana Economic Development (LED).
The company envisions a facility designed to produce up to 8,000 mt/d of blue ammonia, according to The Advocate. LED said it would capture and sequester over 90% of the carbon dioxide emissions produced during the ammonia manufacturing process.
“St. Charles Clean Fuels is proposing to build one of the cleanest industrial projects for the new energy transition,” said SCCF Project Director Ramesh Raman. “By capturing greenhouse gases and engineering the project to consider cleaner, more efficient technologies, the company seeks to make a tangible contribution to lowering the environmental footprint for the global economy while positively benefitting the communities in which we reside.”
International-Matex Tank Terminals would lease land to SCCF at its St. Rose location on the east bank of the Mississippi River in St. Charles Parish. The New Orleans-based company would also build the storage tanks needed to hold the liquified ammonia before transportation via its existing terminal.
“International-Matex Tank Terminals is excited to provide storage and logistics services to support SCCF’s blue ammonia project,” IMTT Chairman and CEO Carlin G. Conner said. “We are proud to leverage our liquids and chemicals handling expertise to help introduce alternative clean energy sources which are vital to the global energy transition.”
The proposed site is currently undergoing a front-end engineering design (FEED) study while the company prepares permit applications. SCCF hopes to make a final investment decision in early 2024 and begin construction later that year, which would enable operations to begin in 2027.
If the project moves forward as outlined, the company expects to create 216 new direct jobs with an average annual salary of more than $90,000. Louisiana Economic Development estimates 949 new indirect jobs would result, for a total of 1,165 potential new jobs in the Southeast Region. The company also estimates the project will result in 2,000 peak construction jobs.
To attract the project, the state has prepared a competitive incentive package that would include a $6 million performance-based grant for infrastructure needs, as well as the full services of LED FastStart, Louisiana’s nationally acclaimed recruitment, customized training, and workforce development program. The company is also expected to apply for participation in the state’s Industrial Tax Exemption and Quality Jobs programs.