Yara, Enbridge to develop low-carbon blue ammonia project

Yara Clean Ammonia and Enbridge have signed a letter of intent to jointly develop and construct a low-carbon blue ammonia production facility as equal partners. The proposed facility, which includes autothermal reforming with carbon capture, will be located at the Enbridge Ingleside Energy Center (EIEC) near Corpus Christi, Texas.

Once operational, the production facility will be capable of supplying low-carbon ammonia to meet growing global demand, with an expected capacity of 1.2m to 1.4m tons per annum. Approximately 95% of the carbon dioxide generated from the production process is anticipated to be captured and transported to nearby permanent geologic storage. If confirmed through the front-end engineering design (FEED) phase and approved, total project investment is expected to be in the range of $2.6bn to $2.9bn, with production start-up in 2027/2028.

Enbridge and Yara will utilise their complementary strengths to develop and execute the project. Yara’s experience in ammonia development, production, operations and distribution, combined with Enbridge’s large-scale infrastructure development expertise and its EIEC deepwater docks and export platform, will be critical to advancing the project from development through to commercial operation. In addition, Yara, the world’s largest ammonia distributor, is expected to contract full offtake from the facility, which further enhances the strategic value and commercial viability of the project.

Enbridge’s Texas Eastern Transmission Pipeline is expected to provide the transportation service for feed gas that will be used for the production process, and Enbridge, along with Oxy Low Carbon Ventures, is advancing a nearby CO2 sequestration hub, a potential destination for the project’s captured CO2.

The construction of any facilities will be subject to receipt of all necessary regulatory approvals.