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BASF And Yara Explore The Possibility Of A Low-Carbon Blue Ammonia JV In The U.S. Gulf Coast

BASF and Yara Clean Ammonia are in discussions to explore the possibility of developing and building a world-scale production facility for low-carbon blue ammonia with carbon capture technology in the US Gulf Coast region. The possible production plant must hold 1.2 to 1.4 million tonnes per annum (p.a.) production capacity to meet the rising demand for low-carbon ammonia.

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The driving factor for the construction of an ammonia plant in the North American region is lower natural gas prices which are around a quarter of the benchmark price in Europe. Natural gas is the raw material using which blue ammonia is produced. Also, the large-scale plant with carbon capture and storage technology will be awarded tax credits in the US.

In this project, approximately 95% of the carbon dioxide emitted during the production process will be captured and stored in the ground permanently, allowing a much cleaner ammonia for the consumers and a major reduction in carbon footprint.

Both companies have had successful collaborations in the past and are elated by the exploration after the latest clean ammonia project. The expected time same for both companies to finish the study for exploring the possibility of a new low-carbon blue ammonia production plant is by 2023-end.
 
For the project, the product of interest has been blue ammonia due to it being completely similar to traditionally produced ammonia but having a much less carbon footprint due to the carbon capture technology used in its production.

With the help of this project, not only will the companies be able to cater to the growing demand for low-carbon ammonia but also meet their sustainability goals and evolve into a climate-neutral company.

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According to the Procurement Resource article, BASF and Yara Clean Ammonia Are looking to construct a new low-carbon blue ammonia production facility in the US gulf coast which will help them meet the rise in global demand for low-carbon ammonia as well as achieve their sustainability goals with the carbon capture technology. The choice of the product for production as well as the location where the plant will be situated, are strategic decisions taken by the companies to save on costs and get tax credits.