Nutrien, one of the largest producers of potash and nitrogen
fertilizers, has struck a deal with Denbury Carbon Solutions to handle
captured emissions from Nutrien’s planned Louisiana ammonia facility—a
project that the company says will be the largest clean ammonia plant
in the world, S&P
Global reports.
Under the agreement, announced last week, Denbury would transport 1.8
million mt/year of CO2 captured from the ammonia plant in Geismar to a
saline aquifer roughly 10 miles away near Donaldsonville. The CO2 will
be stored in the aquifer permanently.
Nutrien, a Canadian company, says the $2 billion plant will capture at
least 90% of CO2 emissions as it strives to serve growing demand from
agriculture, industrial and emerging energy markets. It’s expected to
have a production capacity of 1.2 million mt/year of clean ammonia
produced using an auto thermal reforming technology, a process that
uses a natural gas feedstock.
A final investment decision is expected in 2023, followed by
construction in 2024. Full production would begin in 2027.
Nutrien plans to build world's
largest clean ammonia plant in Louisiana by 2024
Highlights
Denbury selected to offtake captures CO2
Plant would achieve 90% CO2 capture rate
Nutrien, one of the largest producers of potash and nitrogen
fertilizers, has struck a deal with Denbury Carbon Solutions to handle
captured emissions from Nutrien's planned Louisiana ammonia facility –
a project that the company says will be the largest clean ammonia
plant in the world.
Under the agreement, announced May 18,
Denbury would transport 1.8 million mt/year of CO2 captured from the
ammonia plant in Geismar, Louisiana to a saline aquifer roughly 10
miles away near Donaldsonville, Louisiana. The CO2 will be stored in
the aquifer permanently.
Nutrien, a Canadian company, said the $2
billion plant will capture at least 90% of CO2 emissions as it strives
to serve growing demand from agriculture, industrial and emerging
energy markets. It's expected to have a production capacity of 1.2
million mt/year of clean ammonia produced using an auto thermal
reforming technology, a process that uses a natural gas feedstock.
Mitsubishi Corporation has already signed
a letter of intent to offtake up to
Mitsubishi Corporation has already signed
a letter of intent to offtake up to 40% of the plant's ammonia
production to deliver to Asian fuel markets once construction is
complete.
A final investment decision is expected
in 2023 followed by construction beginning in 2024. Full production
would begin in 2027.
"Our commitment to the development and
use of both low-carbon and clean ammonia is prominent in our strategy
to provide solutions that will help meet the world's decarbonization
goals, while sustainably addressing global food insecurity," Nutrien
CEO Ken Seitz said in a statement. "Leadership in clean ammonia
production will play a key role in achieving our 2030 scope 1 and 2
emissions reduction goals."
Nutrien's agreement with Denbury builds
on an existing arrangement between the companies in which Denbury
offtakes 300,000 mt/year of CO2 captured from Nutrien's existing
nitrogen plants in Louisiana – an arrangement that has been in place
for around a decade.
Under that agreement, Denbury transports
the CO2 via its 320-mile Green Pipeline to oil fields in the Houston
area for enhanced oil recovery.
"We are thrilled to expand our successful
long-term partnership with Nutrien through this world class project,"
said Denbury CEO Chris Kendall. "We believe that CCUS-enabled clean
ammonia will be an important source of energy in a lower-carbon
future, and we are honored by the confidence and trust that Nutrien
has continued to place in Denbury to provide this important service."
In addition to Denbury's Green Pipeline,
the company also operates a 183-mile CO2 pipeline that transports CO2
from the Jackson Dome in central Mississippi to enhanced oil recovery
operations throughout the Gulf Coast via a connection to the Green
Pipeline.
Last year, Denbury Vice President Dan
Cole said the company is aiming for a carbon-negative Gulf Coast
operations by the end of the decade.
