[ad_1]
Japanese exploration and production company Inpex Corp, Paris-based Air Liquide Group, Oklahoma City-based LSB Industries, Inc., and Houston-based Vopak Moda Houston LLC are collaborating on the preliminary-front end engineering and design for the development of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel.
If the project proceeds, its first phase is targeted to produce more than 1.1 million metric tons per annum (mtpa) of low-carbon ammonia by the end of 2027, with options for future expansions, Inpex said in a news release Monday. The parties completed a feasibility study on the project earlier in 2023.
Inpex said the Houston Ship Channel, the second largest petrochemical corridor in the world, is the targeted location since it leverages existing infrastructure assets, such as Vopak Moda’s ammonia terminal that includes storage tanks and a newbuild dock with multiple deepwater berths. The proposed facility would also have access to utilities and would be near multiple pipelines that could supply raw materials like natural gas and water.
Air Liquide and Inpex plan to collaborate on low-carbon hydrogen production. Air Liquide would supply its AutoThermal Reforming (ATR) technology, an ideal solution for large-scale hydrogen production projects, combined with its proprietary carbon capture technology. The combination of ATR technology with carbon capture aims to capture at least 95 percent of direct carbon dioxide emissions from hydrogen production with at least 1.6 mtpa of carbon dioxide captured and permanently sequestered from the project. Air Liquide would be responsible for onsite nitrogen and oxygen production, using its proprietary Air Separation Unit technology, the release said.
LSB and Inpex are looking to collaborate on low-carbon ammonia production. LSB would lead the selection of the ammonia loop technology provider, the pre-FEED, and the engineering, procurement, and construction of the facility. LSB would also be responsible for the day-to-day operation of the ammonia loop, according to the release.
Inpex and LSB aim to sell the low-carbon ammonia and finalize offtake agreements with the numerous parties that have expressed interest and could also further partner in the project. The majority of the product is targeted to be used for power generation in Asia, with some volumes going to Europe and the USA. Inpex, with stakes in both hydrogen and ammonia production, said it will likely be the largest investor in the overall project across the entire value chain, from production to export.
Vopak Moda will maintain its ownership of the existing infrastructure and plans to build additional storage capacity as required to handle the low-carbon ammonia production of the proposed new facility.
“As we approach the achievement of our net zero target by 2050, the unveiling of our low carbon ammonia project in Texas, USA, stands as a momentous testament to INPEX’s strong commitment to environmental leadership”, Inpex Representative Director, President and CEO Takayuki Ueda said. “This innovative endeavor marks a significant milestone to create a clean fuel supply chain for a sustainable future. By harnessing the power of cutting-edge technologies and collaborative partnerships with Air Liquide, LSB, and Vopak Moda, we are accelerating the transition to a low-carbon world, while solidifying our position as a pioneer in energy transformation and a responsible global energy player”.
“This project is well aligned with our strategy to become a leader in the global energy transition through the production of low-carbon ammonia”, LSB Industries President and CEO stated Mark Behrman said. “As a long-standing, highly experienced nitrogen producer and developer of nitrogen production facilities, we are uniquely positioned to play a key role in a critical element of this project by overseeing the design, construction, and operation of the ammonia loop. We are excited to be part of this consortium, comprised of best-in-class energy-related companies, and look forward to working with them as we make the vision of this world-scale clean ammonia facility a reality”.
“The worldwide movement to decarbonize industry and transportation will drive strong global demand for low-carbon ammonia”, Vopak US and Canada President Maria Ciliberti and Moda Midstream Co-Founder and CEO Jonathan Ackerman said in a joint statement. “Vopak Moda has invested in our talented, experienced workforce and state-of-the-art storage and marine infrastructure to be a leader in the emerging low-carbon ammonia export market. We believe the unbeatable combination of project expertise, technology, off-taker relationships, and market credibility position Vopak Moda, Air Liquide, Inpex, and LSB to be first movers for a new wave of low-carbon energy exports”.
“Air Liquide is committed to working with its customers and industry partners to provide innovative and sustainable technology solutions to decarbonize traditional industrial processes, like ammonia production”, Air Liquide North America CEO Adam Peters said. “We are proud to contribute our hydrogen production expertise and portfolio of sustainable technologies in order to produce low-carbon hydrogen to support decarbonization of industrial markets. Together with our customers, we can reduce carbon emissions in industrial basins and advance toward a more sustainable future”.
To contact the author, email rocky.teodoro@rigzone.com
[ad_2]
Source link