OCI NV broke ground Dec. 7 on its 1.1 million mt/y blue ammonia facility in Beaumont, Texas (GM Sept. 9, p. 1). OCI said it will be the largest blue ammonia facility of its kind in Texas, enabling the capture and sequestration of up to 1.7 million mt/y of CO2.
Production is scheduled for 2025. OCI said site preparation work is nearly complete, construction activities are commencing and the air permit was received on Dec. 1.
The total investment cost for OCI is expected to be below $1 billion, including spending on upsized utilities and available land to allow for doubling to 2.2 mt/y capacity in the future. The project has been designed to transition from blue to green ammonia production in the future as green hydrogen becomes available at larger scale.
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.
“We are delighted that OCI is expanding its already significant presence in Southeast Texas, a region which, as a clean energy leader and with its strategic location, plays a key role in the growing low-to-zero carbon hydrogen industry and is one of the best places globally to invest in this area,” said OCI Executive Chair Nassef Sawiris. “We look forward to continuing our partnerships with Jefferson County, the City of Beaumont, Beaumont ISD, the special districts, and the State of Texas.”
OCI said the project leverages the significant and growing capabilities that exist in Southeast Texas for blue and green ammonia and hydrogen production, as the area already has extensive existing hydrogen pipeline delivery infrastructure, hydrogen storage capability, and industrial customers, as well as a wealth of companies leading in energy technology integration, deployment, operations, and maintenance, and a skilled labor force in clean energy.
OCI noted that the Texas location will have easy access to both the US and export markets, including Europe and Asia. In June, OCI announced a tripling of throughput capacity at its Port of Rotterdam ammonia import terminal, to 1.2 million mt/y by 2023 (GM June 17, p. 28), to serve emerging ammonia demand for bunkering to oceangoing vessels and act as a hub to help decarbonize the EU and reduce its reliance on imported natural gas.
The new facility is also positioned to supply blue ammonia to OCI’s plants in the Netherlands. OCI’s 1.2 million mt/y of ammonia capacity has been impacted by high natural gas prices in the EU. However, it is able to operate value-added downstream production and continue to address food security concerns with support from imported ammonia.
At the new facility, OCI will upgrade “over-the-fence” blue hydrogen to produce blue ammonia, where over 95% of carbon emissions will be captured and sequestered.
The ammonia plant will use KBR technology. The engineering and procurement contract was awarded to Maire Tecnimont.
OCI said the new facility will support around 60-80 new full-time jobs, as well as around 1,000 construction jobs at the peak of site construction for the OCI scope.
OCI added that it is also continuing its investments in the future talent of the area. It recently announced a $200,000 donation to the Beaumont Independent School District to develop opportunities to expand STEM education for students, continuing its long-term partnership with the school district.
OCI is also planning a major carbon capture project for the company’s subsidiary Iowa Fertilizer Co. (IFCo) in Wever, Iowa, which will allow it to produce blue ammonia, urea, and DEF (GM Sept. 9, p. 1). The project is targeted to be complete in first-quarter 2025.