Low-Carbon Ammonia Project
In October 2023, LSB Industries, INPEX Corporation, Air Liquide and Vopak Moda jointly announced their agreement to collaborate on the pre-FEED (Front-End Engineering Design) for the development of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel. If the development proceeds, the project’s first phase is targeted to produce more than 1.1 million tonnes per annum (MTPA) of low-carbon ammonia by the end of 2027, with options for future expansions.
- Air Liquide to collaborate with INPEX on low-carbon hydrogen production for use as feedstock for LSB-operated ammonia loop, in addition to carbon capture and nitrogen production.
- LSB Industries to collaborate with INPEX, Japan’s largest E&P company, on the production and marketing of low carbon ammonia; JV agreement being negotiated.
- Facility to sit on Vopak Moda’s Houston Ship Channel site.
- Expected production of 1.1 million metric tons of blue ammonia per year and sequestration of ~1.6 million metric tons of CO2.
- Feasibility study completed in Q1 2023; Pre-FEED expected to be completed by Q2 2024 followed by FEED.
- Project operations expected to begin by late-2027.
“This project is well aligned with our strategy to become a leader in the global energy transition through the production of low-carbon ammonia,” stated Mark Behrman, LSB Industries President and CEO. “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 preferred facility’s location on the Houston Ship Channel, the second largest petrochemical corridor in the world, leverages existing infrastructure assets. Vopak Moda has invested in storage and handling infrastructure for bulk liquid products and currently operates an ammonia terminal that includes storage tanks and a newbuild dock with multiple deep-water berths. The project also has access to utilities and would be near multiple pipelines that could supply raw materials like natural gas and water.