Yara and Enbridge to Jointly Develop Low-Carbon Ammonia Facility in Texas

Yara Clean Ammonia and Enbridge Inc. have signed a letter of intent to develop and construct a world-scale low-carbon blue ammonia production facility as equal partners. The proposed facility will be located at the Enbridge Ingleside Energy Center (EIEC) near Corpus Christi, Texas.

The production facility will be capable of supplying low-carbon ammonia to meet the growing global demand. Once operational, it is expected to have a capacity of 1.2–1.4 million tons per annum. The project will include auto thermal reforming with carbon capture, with an estimated capture rate of 95% of the carbon dioxide generated during the production process.

Partnerships and Collaboration

Yara and Enbridge will work together, utilizing their complementary strengths to develop and execute the project. Yara’s expertise in ammonia development, production, operations and distribution, combined with Enbridge’s large-scale infrastructure development expertise and world-class EIEC deep water docks and export platform, will be critical to advancing the project from development through to commercial operation. Additionally, Yara, the world’s largest ammonia distributor, is expected to contract full offtake from the facility, which further enhances the strategic value and commercial viability of the project.

Enbridge’s Texas Eastern Transmission Pipeline is expected to provide the transportation service for feed gas that will be used for the production process, and Enbridge, along with Oxy Low Carbon Ventures, is advancing a nearby CO2 sequestration hub which is a potential destination for the project’s captured CO2.

Expected Investment and Timeline

If confirmed through the Front-end Engineering Design (FEED) phase and approved, total project investment is expected to range between US$2.6 billion to US$2.9 billion. Production start-up is expected in 2027/2028. The construction of any facilities will be subject to receipt of all necessary regulatory approvals.

Statements from Yara and Enbridge

Colin Gruending, Enbridge Executive Vice President and President, of Liquids Pipelines, said, “We are excited to partner with Yara and collaborate on this clean energy project, especially given their expertise in global ammonia projects, operations, and distribution. EIEC is well positioned to become the most sustainable export terminal in North America through low-carbon fuel production, carbon capture, and solar self-power.”

Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said, “Yara is pleased to be joining Enbridge in developing this significant clean ammonia project. As presented at our Capital Markets Day, we are working systematically to develop project opportunities in the U.S. and this project will significantly contribute to our strategy of decarbonizing agriculture as well as serving new clean ammonia segments such as shipping fuel, power production, and ammonia as a hydrogen carrier.”

About Yara Clean Ammonia

Yara Clean Ammonia is the largest ammonia distributor in the world and operates the largest global ammonia network with 15 ships and access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world, through Yara International. Yara Clean Ammonia’s revenues and EBITDA for 2022 were USD 4,428 million and USD 249 million respectively. The company aims to significantly strengthen its leading global position by unlocking the green and blue value chains and driving the development of clean ammonia globally. The company is headquartered in Oslo, Norway.