LSB Industries Inc., Tokyo-based INPEX Corp., Paris-based Air Liquide Group, and Vopak Moda Houston LLC announced on Oct. 3 that they have agreed to collaborate on the pre-FEED (Front End Engineering Design) study for the development of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel.
If the plan proceeds, the project’s first phase is targeted to produce more than 1.1 million mt/y of low-carbon ammonia by the end of 2027, with options for future expansions.
“This project is well aligned with our strategy to become a leader in the global energy transition through the production of low-carbon ammonia,” said Mark Behrman, LSB President and CEO. “As a long-standing, highly experienced nitrogen producer and developer of nitrogen production facilities, we are uniquely positioned to play a key role in a critical element of this project by overseeing the design, construction, and operation of the ammonia loop,” Behrman said.
“We are excited to be part of this consortium, comprised of best-in-class energy-related companies, and look forward to working with them as we make the vision of this world scale clean ammonia facility a reality,” Behrman added.
Other LSB low-carbon initiatives have been announced for the company’s El Dorado, Ark., and Pryor, Okla., facilities (GM April 29, 2022; May 27, 2022). In addition, LSB is partnering with Amogy Inc. to promote the adoption of low carbon ammonia as a marine fuel, initially for the US inland waterways transportation sector (GM May 26, p. 29).
LSB would collaborate with INPEX, Japan’s largest exploration and production company, in both producing and marketing the ammonia at the new Texas site. The majority of the product is expected to be used for power generation in Asia, with some volumes going to Europe and the US.
The companies said numerous parties have expressed interest and could also join as partners. INPEX, which has stakes in both hydrogen and ammonia production, will likely be the largest investor in the overall project across the entire value chain, from production to export.
The parties said they completed a feasibility study on the project earlier this year and the preferred facility’s location on the Houston Ship Channel, the second largest petrochemical corridor in the world, leverages existing infrastructure assets.
Vopak Moda has invested in storage and handling infrastructure for bulk liquid products and currently operates an ammonia terminal that includes storage tanks and a newly built dock with multiple deepwater berths. The company plans to build additional storage capacity as required to handle the facility’s production. The project also has access to utilities and is near multiple pipelines that could supply raw materials like natural gas and water.
Air Liquide and INPEX would collaborate on low-carbon hydrogen production, with Air Liquide supplying its AutoThermal Reforming (ATR) technology for production, along with its proprietary carbon capture technology.
The partners said this combination would capture at least 95% of direct CO2 emissions from hydrogen production, with at least 1.6 million mt/y CO2 captured and permanently sequestered from this project. Air Liquide would be responsible for onsite nitrogen and oxygen production, using its proprietary Air Separation Unit (ASU) technology.