OCI NV and industrial gases and engineering company Linde Plc have signed a long-term agreement under which Linde will supply clean hydrogen and nitrogen feedstocks to OCI’s new 1.1 million mt/y blue ammonia plant under development in Beaumont, Texas (GM Dec. 9, 2022; Sept. 9, 2022), according to separate statements by the two companies.
UK-based Linde said it will build, own, and operate an on-site complex, which will include autothermal reforming and carbon capture, as well as a large air separation plant. The new complex will be integrated into Linde’s Gulf Coast industrial gas infrastructure.
It will supply OCI with clean hydrogen by sequestering more than 1.7 million mt of carbon dioxide emissions each year. OCI will upgrade the hydrogen to produce blue ammonia.
Linde’s total investment will be approximately $1.8 billion, while OCI reiterated that its own total investment is expected to be below $1 billion, including spending on upsized utilities and available land to allow for doubling of the blue ammonia facility to 2.2 million mt/y in the future. The new ammonia project has been designed to transition from blue to green ammonia production in the future as green hydrogen becomes available at larger scale.
OCI broke ground on the new ammonia plant on Dec. 7 last year (GM Dec. 9, 2022) and in this week’s statement announcing the supply deal with Linde, said construction had started and the project is on track to start production in 2025.
The project’s site is adjacent to OCI’s existing integrated 1.4 million mt/y ammonia and methanol production facility in Beaumont and the 1.8 million mt/y 50%-owned methanol joint venture, Natgasoline.
In addition to supplying OCI, Linde said it also will use its extensive pipeline network to provide clean hydrogen to existing and new customers in the US Gulf Coast, “addressing the increasing demand from companies to decarbonize their operations.”