The Houston Ship Channel to Host a Large-scale, Low-carbon Ammonia Production

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Credit: nick-jones-unsplash
  • INPEX Corporation, Air Liquide Group, LSB Industries, Inc., and Vopak Moda Houston LLC have agreed to collaborate on a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel.
  • The project’s first phase aims to produce over 1.1 million tonnes per annum of low-carbon ammonia by the end of 2027.
  • Vopak Moda currently operates an ammonia terminal and has invested in storage and handling infrastructure.
  • Air Liquide and INPEX will collaborate on low-carbon hydrogen production using AutoThermal Reforming (ATR) technology and proprietary carbon capture technology.
  • Vopak Moda currently operates ammonia storage and handling infrastructure from its Very Large Gas Carriers (VLGC)-capable deepwater berth.

Global Energy and Chemical Leaders Partner to Develop a Large-Scale, Low-Carbon Ammonia Production Export Project on the Houston Ship Channel, states an INPEX news source.

Tokyo-based INPEX Corporation

Tokyo-based INPEX Corporation, Paris-based Air Liquide Group, Oklahoma City-based LSB Industries, Inc., and Houston-based Vopak Moda Houston LLC have agreed to collaborate on the pre-FEED for the development of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel. 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.

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 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.

The project partners will bring complementary expertise to the production, operation, storage, and export for the advancement of low-carbon ammonia production in the US. Air Liquide and INPEX will collaborate on low-carbon hydrogen production, using its AutoThermal Reforming (ATR) technology and proprietary carbon capture technology. The combination of ATR technology with carbon capture aims to capture at least 95% of direct CO2 emissions from hydrogen production with at least 1.6 MTPA CO2 captured and permanently sequestered from this project.

LSB and INPEX

LSB and INPEX will collaborate on low-carbon ammonia production, leading the selection of the ammonia loop technology provider, the pre-FEED, and the engineering, procurement, and construction of the facility. They will also be responsible for the day-to-day operation of the ammonia loop.

The majority of the product would be used for power generation in Asia, with some volumes going to Europe and the US. INPEX, with stakes in both hydrogen and ammonia production, will likely be the largest investor in the overall project across the entire value chain, from production to export. Vopak Moda currently operates ammonia storage and handling infrastructure from its Very Large Gas Carriers (VLGC)-capable deepwater berth in the deepest part of the Houston Ship Channel.

INPEX Corporation is Japan’s largest exploration and production (E&P) company, involved in projects across multiple continents, including the Ichthys LNG Project in Australia as Operator. INPEX aims to provide a stable supply of diverse and clean energy sources including oil, natural gas, hydrogen/ammonia, and renewables as a pioneer in energy transformation. Air Liquide Group is a world leader in gases, technologies, and services for Industry and Health, present in 73 countries with approximately 67,100 employees and serving more than 3.9 million customers and patients. Oxygen, nitrogen, and hydrogen are essential small molecules for life, matter, and energy, embodying Air Liquide’s scientific territory since its creation in 1902.

Energy transition

LSB Industries, Inc. is committed to playing a leadership role in the energy transition through the production of low and no carbon products that build, feed, and power the world. The company manufactures ammonia and ammonia-related products at facilities in Cherokee, Alabama, El Dorado, Arkansas, and Pryor, Oklahoma, and operates a facility for a global chemical company in Baytown, Texas. Additional information about LSB can be found on their website at www.lsbindustries.com.

Vopak Moda Houston LLC is strategically located in Houston’s refining and petrochemical corridor and in close proximity to multiple third-party ammonia, hydrogen, and nitrogen pipelines. The state-of-the-art facility is designed to berth VLGCs, as well as smaller vessels and barsges. Vopak Moda is connected via pipeline to the Port of Houston petrochemical complex, the nation’s largest and world’s second-largest petrochemical complex. Jointly owned, developed, and operated by Royal Vopak and Moda Midstream, the facility combines the strengths of Vopak’s global network and experience with Moda’s successful track record of developing and operating premier independent logistics infrastructure.

Forward-looking statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are subject to known and unknown risks, uncertainties, and assumptions about the company, which may include projections of future financial performance and anticipated performance based on growth and other strategies and anticipated trends in the business. There are important factors that could cause actual results, level of activity, performance, or actual achievements to differ materially from the results, level of activity, performance, or anticipated achievements expressed or implied by the forward-looking statements.

 

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Source-INPEX