YARIY Yara International ASA (PK)

By Dominic Chopping

Norwegian chemical company Yara International ASA said Friday that its clean-ammonia unit has signed a letter of intent with Canadian pipeline and energy company Enbridge Inc. to jointly develop and construct a low-carbon blue ammonia production facility.

If confirmed, total project investment is expected at between $2.6 billion and $2.9 billion, with production start-up in 2027-28.

The proposed facility will be located at the Enbridge Ingleside Energy Center in Texas, and once operational, the production facility will have an expected capacity of 1.2 million-1.4 million tons a year, Yara said.

Blue ammonia is produced using natural gas, with the carbon-dioxide byproduct captured and stored. The ammonia can be used as a low-emission fuel for shipping and power, fertilizer production and for industrial applications.

Around 95% of the carbon dioxide generated from the production process is anticipated to be captured and transported to nearby permanent geologic storage, the company said.

Yara said it expects to contract full offtake from the facility, with the Enbridge Texas Eastern Transmission Pipeline providing the transportation for feed gas that will be used for the production process.

The construction of any facilities will be subject to receipt of all necessary regulatory approvals.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

March 31, 2023 02:49 ET (06:49 GMT)

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