Yara [YARIY:US], a Norwegian fertiliser maker, and Enbridge[ENB:US], a Canadian pipeline company, have announced their plan to invest up to USD2.9bn to construct a low-carbon blue ammonia production plant in Texas, as reported by Reuters on March 31. The plant will be Yara’s largest, and it will be built at an Enbridge oil storage and export facility near Corpus Christi, with production set to commence around 2027-28. Blue ammonia is produced from natural gas, with the carbon dioxide byproduct captured and stored. Yara intends to purchase all of the plant’s output for feedstock in its global production system, including Europe, as well as for new clean ammonia markets such as shipping fuel. The plant is expected to produce 1.2 million to 1.4 million tonnes of low-carbon ammonia per year, with 95% of the CO2 generated from production captured and transported for nearby permanent storage.

Low-carbon blue ammonia is considered a crucial component in the transition to cleaner energy sources and the reduction of global carbon emissions. Blue low-carbon ammonia is similar to regular grey ammonia, but with the addition of carbon capture technology that can decrease its carbon emissions by over 90%.Yara’s decision to invest in the United States is part of a growing trend of European companies making significant investments in the region, attracted by low energy prices and favorable government incentives. 

Sources:

https://www.reuters.com/business/energy/yara-enbridge-eye-29-bln-texas-ammonia-plan-2023-03-31/

https://www.woodplc.com/insights/blogs/Emerging-role-of-blue-and-green-ammonia-in-decarbonisation