MOL Clean Energy US LLC (MCE), a subsidiary of Japanese shipping company Mitsui O.S.K. Lines Ltd. (MOL), has made a strategic investment in Ascension Clean Energy (ACE), a proposed global-scale clean hydrogen-ammonia production and export facility in Ascension Parish, Louisiana, according to a June 14 announcement.
As a result of the investment, MOL has become a joint venture shareholder in the project, along with project development startup Clean Hydrogen Works LLC (CHW), Grand Prairie, Texas; carbon solutions provider Denbury Carbon Solutions, a subsidiary of Denbury Inc., Plano, Texas, and the largest CO2 pipeline operator in the US; and Singapore-based Hafnia, a major oil product and chemical tanker company.
“Clean hydrogen-ammonia is critical to decarbonizing the global energy market,” said Tomoaki Ichida, CEO of MCE. “With this innovative project, MOL is investing not only for our future growth, but also helping promote the development and adoption of clean hydrogen-ammonia within our fleet and customer base.”
First announced by CHW in November last year (GM Nov. 4, 2022), the $7.5 billion ACE project plans to include two world-scale ammonia blocks with estimated ammonia production totaling 7.2 million mt/y. The two ammonia blocks are currently projected to start up in a staged approach, with Block 1 production anticipated to commence in 2027.
The facilities are to be constructed on a 1,700-acre RiverPlex MegaPark site on the West Bank of the Mississippi River in Donaldsonville, La., with ready access for exports. A final investment decision on the project is anticipated in 2024. Approximately 75% of the planned ammonia production volume is supported by letters of intent for offtake agreements with high-quality purchasers, the partners announced in November.
ACE is expected to generate approximately 1,500 construction jobs over five years, 350 permanent, full-time jobs once fully operational, and an additional 626 jobs in Ascension Parish, along with nearly $2.2 billion in new sales in firms across Louisiana, CHW said.
“With the rapidly evolving macro-environment, the world’s net zero goals must be increasingly coupled with affordability and security of energy supply,” said Mitch Silver, CHW Senior Vice President and Chief Operating Officer. “MOL’s practical yet visionary approach to decarbonization will add critical capabilities and insights to support ACE in delivering on its mission to provide customers with affordable and large-scale clean energy solutions.”
As reported last November, Denbury has a 12-year contract, with extension options, to transport and sequester CO2 captured from the project, which is anticipated to be built less than two miles from Denbury’s existing CO2 pipeline network. Captured CO2 volumes are estimated to be approximately 12 million mt/y. Hafnia plans to export the ammonia to emerging energy markets overseas.
As of last November, Denbury had invested $10 million into the ACE project through an investment in CHW and had committed to invest another $10 million when certain project milestones are achieved.