Global energy, chemical leaders to develop low-carbon ammonia in Texas

Japan’s INPEX, Paris-based Air Liquide, Oklahoma City’s LSB Industries and Houston-based Vopak Moda Houston said October 3 they have agreed to collaborate on preliminary front-end engineering design (pre-FEED) for the development of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel in Texas.

If the development proceeds, the first phase would produce more than 1.1mn tonnes/year of low-carbon ammonia by the end of 2027, with options for future expansion.

The parties completed a feasibility study on the project earlier this year and the preferred facility’s location on the Houston Ship Channel leverages existing infrastructure assets. 

Vopak Moda has invested in storage and handling infrastructure for bulk liquid products and currently operates an ammonia terminal. The project also has access to utilities and would be near multiple pipelines that could supply raw materials like natural gas and water.

Under the partnership, Air Liquide and INPEX would collaborate on low-carbon hydrogen production, leveraging Air Liquide’s autothermal reforming technology and its proprietary carbon capture technology. Blue hydrogen production from this part of the project would capture and store at lease 1.6mn tonnes/year of CO₂.

LSB Industries and INPEX would collaborate on low-carbon ammonia production, with LSB leading the selection of the ammonia loop technology provider, pre-FEED, and engineering, procurement and construction of the facility.

INPEX and LSB would sell the low-carbon ammonia and finalise off-take agreements. Most of the ammonia would be used for power generation in Asia with some volumes going to Europe and the US.

With stakes in both hydrogen and ammonia, INPEX will likely be the largest investor in the overall project, from production to export.